Rise in Property Frauds Targeting NRIs: A Disturbing Trend in Punjab's Real Estate
The Punjab and Haryana High Court has expressed deep concern over the increasing number of property fraud cases targeting Non-Resident Indians (NRIs), highlighting a disturbing trend that undermines public trust in the real estate ecosystem.
Property FraudNrisPunjabReal EstateLegal SafeguardsReal EstateMay 21, 2025
Justice Brar stated, “This case is yet another example of a disturbing trend that is steadily gaining ground, wherein unscrupulous individuals take advantage of Non-Resident Indians (NRIs), particularly those who are unable to visit India frequently or manage their properties here. Time and again, such vulnerable property owners are defrauded through forged documents, misuse of Powers of Attorney, often resulting in the sale of their properties at grossly undervalued rates.”
The Court further noted that the scale of this deceit is symptomatic of systemic abuse, where absence is weaponized and legal safeguards are routinely undermined. These offenses are rooted in a breach of trust and stand on a different pedestal than conventional criminal offenses in terms of criminal jurisprudence. They not only impact the personal and financial security of the victims but also have cascading effects on public trust in the real estate ecosystem and, ultimately, the economic stability of the State.
The pre-arrest bail petition was filed by Bagel Singh and Raghuvir Singh, who were accused under Sections 318(4), 319(2), 336(2), 336(3), 338, 340(2), 61(2) of BNS, 2023, and Sections 81 read with Section 34(3) and 82 of the Registration Act. After hearing the submissions, the Court noted that property owned by an NRI in Ludhiana, comprising land worth several crores of rupees, had been sold through impersonation for only Rs. 30.20 lakhs, out of which cheques amounting to Rs. 30 lakhs were never presented for encashment.
Justice Brar highlighted, “It is strange that the Sub-Registrar at the time of execution of the sale deed allowed the presentation of cheques instead of demand drafts. The appointment on behalf of the purchaser for the registration of the sale deed was taken by Sham Sunder, Advocate, whereas, he did not appear and identify the parties. Instead, one Gurcharan Singh Marwaha, a co-accused, appeared and identified the parties as a marginal witness, and the petitioner, Bagel Singh, identified the impersonator as the seller and owner of the property in question.”
The Court noted that the role of the co-accused, Gurcharan Singh, is similar in nature, as he signed as a marginal witness. Further, the CCTV footage of the camera installed in the office of the Sub-Registrar in Ludhiana, obtained during the investigation, showed that Gurcharan Singh and other accused persons were present at the time of the execution of the registration of the sale deed and at the same time, the print of the sale deed was taken out.
The facts and circumstances of the case clearly indicate that the petitioners and other co-accused are part of a larger conspiracy to usurp the properties of Non-Resident Indians (NRIs). The Court took note of the State counsel's submission that the real owner was not even aware of the fraud when the sale deed was executed in favor of the co-accused by way of impersonation. Apart from this, no sale consideration has exchanged hands, and custodial interrogation of the petitioners is imperative to establish the role of other co-accused, including revenue officials.
Considering the petitioners' and the criminal antecedent behavior of petitioner Bagel Singh, the Court found no ground to grant anticipatory bail to the petitioners. The case highlights the need for stringent measures to protect NRIs' property rights and restore public trust in the real estate ecosystem.
Frequently Asked Questions
What is the main concern expressed by the Punjab and Haryana High Court?
The main concern expressed by the Punjab and Haryana High Court is the increasing number of property fraud cases targeting Non-Resident Indians (NRIs), which is termed as a 'disturbing trend' that undermines public trust in the real estate ecosystem.
What are the common methods used in these property frauds?
Common methods used in these property frauds include the forgery of documents, misuse of Powers of Attorney, and impersonation of property owners to sell their properties at undervalued rates.
What was the outcome of the pre-arrest bail petition filed by Bagel Singh and Raghuvir Singh?
The pre-arrest bail petition filed by Bagel Singh and Raghuvir Singh was denied by the Court, as it found no ground to grant anticipatory bail to the petitioners due to the gravity of the case and their criminal antecedents.
What role did the Sub-Registrar play in the fraud case mentioned in the article?
The Sub-Registrar allowed the presentation of cheques instead of demand drafts and did not properly verify the identities of the parties involved, which facilitated the fraud.
What are the broader implications of these property fraud cases?
The broader implications of these property fraud cases include a breach of trust, impact on the personal and financial security of the victims, and negative effects on public trust in the real estate ecosystem and the economic stability of the State.
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