Mumbai is a city of dreams where owning a home is a milestone many strive to achieve. However, the high demand for property also makes the market a target for dishonest practices. Recent reports of a high-profile scam in South Mumbai, where a businessman was allegedly cheated of ₹5 crore in a project that never reached its promised height, serve as a wake-up call for all property buyers.
The anatomy of a real estate scam
Most property-related frauds follow a similar pattern. It often begins with an attractive “pre-launch” offer. Developers may showcase brochures for a grand 40 or 50-storey tower, promising luxury amenities and breathtaking views.
In many Mumbai real estate fraud cases, buyers are pressured to pay large sums upfront to “lock in” a lower price. In the South Mumbai case involving the Aafiyah Heights project, the victim was sold apartments on the 40th and 41st floors. Years later, it was discovered that the building only stood 23 floors high. This highlights a major risk: buying “air” or floors that haven’t even been approved for construction.
Red flags to watch out for
To protect your hard-earned money, you must look beyond the glossy marketing materials. Here are common warning signs:
- Missing registrations: Always check if the developer’s firm and the specific project are registered with the regulatory authorities. In many fraud cases, companies operate for years before officially registering.
- Unrealistic timelines: If a builder promises a massive skyscraper will be ready in an impossibly short time (like 24–30 months), be sceptical.
- Lack of transparency: If a developer is hesitant to show you the approved building plans or the “Commencement Certificate,” something is likely wrong.
How to protect yourself
Before signing any papers or transferring money, follow these simple steps:
- Verify the floor plan: Ensure the floor you are buying actually exists in the government-approved plans. If you are buying the 40th floor, but the government has only cleared 20 floors, you are at high risk.
- Check bank records: Always pay through official channels. Avoid cash transactions. Legitimate projects will have a dedicated account where your money is safe and tracked.
- Legal due diligence: Hire an independent lawyer to check the land titles. Don’t just rely on the documents provided by the builder.
The role of the police and RERA
When things go wrong, the first step is usually filing a police complaint (FIR) for cheating and criminal breach of trust. Additionally, the Real Estate Regulatory Authority (RERA) acts as a watchdog. While legal battles can be long, sometimes lasting over a decade, taking immediate action is vital for any hope of a refund.
Mumbai’s real estate market offers great opportunities, but it requires an “eyes wide open” approach. By staying informed about common Mumbai real estate fraud cases, you can ensure your journey to homeownership doesn’t turn into a legal nightmare.
Also Read – Mumbai’s real estate revolution: Understanding the Pagdi system reform
Disclaimer – This article is for general informational purposes only and does not constitute legal or financial advice. Readers should verify all property documents independently and consult a legal professional before investing.
Source – ET Realty
Write Your Comment