Gorakhpur Real Estate Scandal: Single PAN Card Used in Over 100 Property Registries
Authorities in Gorakhpur have uncovered a real estate scam involving the use of a single PAN card in over 100 property registries, highlighting significant issues in property transaction oversight.
Real EstateFraudTax EvasionPan CardProperty RegistryReal EstateSep 19, 2025
The Income Tax Department’s investigation revealed that investors intentionally used one PAN to mask transactions, raising suspicions of tax evasion. The anomalies came to light during an examination of 54,000 registry records from the 2022–23 and 2023–24 financial years.
Cross-checking online data from registration offices confirmed the repeated use of the same PAN. Chartered accountants had previously flagged these irregularities, but many transactions were not recorded in the Income Tax Department’s indexing system. Local registration officials had imposed minor fines and closed some cases without thorough investigation, allowing the scheme to persist.
A team from the Income Tax Department conducted raids in Gorakhpur, reviewing documentation and interrogating registration office officials. On August 6, the team examined 100 registry documents and found 75 using fake PANs.
Experts warn that such practices not only facilitate tax evasion but also compromise transparency in real estate transactions. According to authorities, the case highlights systemic weaknesses in property registration oversight and underscores the need for stricter auditing of registry data.
The Income Tax Department is conducting a comprehensive investigation and has pledged to pursue legal action against all guilty parties. Officials noted that the probe could uncover additional registries and larger financial implications as the investigation continues.
Triveni Singh, former IPS officer and financial crime expert, commented, “When multiple stakeholders use a single PAN, it points to a coordinated effort to evade taxes. Such schemes exploit administrative gaps in registration offices and weaken the integrity of property markets. Comprehensive audits and enforcement are crucial to prevent such frauds from recurring.”
Frequently Asked Questions
What is the main issue uncovered in the Gorakhpur real estate scam?
The main issue is the use of a single PAN card in over 100 property registries, which is suspected to be a scheme to evade taxes.
How much money is involved in the real estate transactions?
The scheme is estimated to cover over ₹70 lakh ($85,000) in property dealings.
How were the irregularities detected?
The irregularities were detected through the examination of 54,000 registry records from the 2022–23 and 2023–24 financial years, and cross-checking online data from registration offices.
What actions are being taken by the authorities?
The Income Tax Department is conducting a comprehensive investigation and has pledged to pursue legal action against all guilty parties.
What are the implications of this scam for property market oversight?
The scam highlights systemic weaknesses in property registration oversight and underscores the need for stricter auditing and enforcement to prevent such frauds from recurring.
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