Real estate scams in India have moved beyond isolated incidents, posing serious risks to investing in the real estate market. A report was filed by Hyderabad police in January 2026, stating that the money was being raised under the name of pre-launch offers. 19 cases were filed as a chargesheet. Overall, ₹3,000 crore was lost by 2,500 sufferers. Not only this, there are several other cases in different places that are resulting in huge losses of money.
These cases highlight a troubling reality. Even after having such strict rules and regulations, property transactions can still be manipulated at multiple stages. This article will walk you through the real estate scams in India that you might traditionally face in the modern world.
Table of contents
Online Real Estate Scam
An online real estate scam happens when fraudsters use websites, social media, or messaging apps to cheat you while buying or renting property. They post fake listings, share false documents, and ask for advance payments without owning or legally representing the property. Below, you are provided with the common types of offline scams so that you do not skip an integral part of the process and stay informed:
1. Fake rental ads on instant messaging platforms and social media
In this scam, fraudsters post fake rental property ads on instant messaging platforms and social media to attract tenants. They share attractive photos, quote low rents, and then ask for advance payments or booking amounts, after which they disappear without offering any genuine property or rental agreement.
Real-life incident: Police in Bengaluru busted a case of a Telegram rental listing. One of the complaints stated that the buyer was unapologetically robbed of ₹6.25 lakh. This was executed once the victim was pulled into a private chat and further guided through the payment process. The FIR was simply registered in the East Cybercrime Police in December of 2025. The investigators then later confirmed that this scam was growing healthily in the field of rental listing.
2. Traps in UPI and QR payments for rent, deposit, and token
Scammers misuse UPI and QR-based payment requests during rental discussions to create confusion around deposits, tokens, or advance rent. They would present a payment step as a routine confirmation or receipt process, but the flow is planned to initiate a debit instead of a credit. Once the payment is approved, the money is transferred instantly. This is executed before the person realises that they have made a payment rather than receiving it.
Real-life incident: As per Deccan Herald, a scammer proved himself to be a tenant. Further, he shared a QR code mentioning that it is some kind of rental payment step. The victim was successfully scammed for ₹4 lakhs after scanning and processing the payment. This made the local police realise the need to spread awareness about QR payment requests from an unknown identity.
3. Payment and instruction hijacking during transactions
The fraudsters interfere with ongoing property transactions by posing as a trusted party and sending altered payment instructions at the final stage. They rely on look-alike phone numbers, email IDs, or hacked communication channels to redirect payments to their accounts. Just because the request appears to come from a familiar source and carries urgency, victims transfer funds before realising the instructions were manipulated.
Real-life incident: A company in Mangaluru was patiently waiting for daily payment requests when they received an email from a supplier that seemed legit. The poster stated that the details of the banks have been changed, and you are requested to make the payment to the new account. The firm accepted the transfer with utmost trust and later discovered that the actual supplier never received any payment. It was later realised that the payment instruction was nothing more than a fraud manipulation.
Offline Real Estate Scam
Offline fraud takes place when the official paperwork, possession, and ownership are not properly verified. You solely become a part of such concerns because of unofficial agreements, unclear ownership rights, and spoken commitments.
1. General Power of Attorney fraud concerning NRIs and expired property holders
Scammers exploit GPA by unethically presenting themselves as legitimate representatives of property owners who are NRIs or expired. They use made-up documents to appear legally eligible to sell, lease, and transfer the property. Transactions are processed until the actual ownership and lack of authority come to light later because the official documentation seems valid when first witnessed.
Real-life incident: As stated by The Indian Express, the police went on to arrest a fraudster in Mohali who was solely responsible for running a property-related document scam racket. He was accused of making up false GPA documents and using this paperwork to perform illegal real estate transactions. The police reported that the scams he carried out cost victims roughly ₹7 crore in total. The police also mentioned that this figure could increase as the investigation proceeds.
2. Scams ahead of a launch
Fraudsters pretend the projects are early access or newly launched to attract buyers with the promise of lower prices and priority allotment. They collect booking amounts before the project has clear approvals or authority to sell. Once money is accepted, timelines change, commitments weaken, and you hear nothing from them again. This ultimately leaves buyers without a secured investment or clear documentation.
Real-life incident: Hyderabad recorded a case of a filed chargesheet to the police about a large number of cases pointing towards Infratech Venture. The officials claimed that the group used to collect a large amount of money with the false support of pre-launch offers for the apartment projects, which were mentioned to be under the market pricing.
A single project was mentioned in the chargesheet to have included around 1,200 investors and losses which eventually reached hundreds of crores. The overall case impacted thousands of victims across multiple projects.
3. One unit, multiple investors
Scammers sell the same property to a number of investors by issuing distinguishable agreements. Each buyer is naturally made to believe they have exclusive rights to the property. They claim it with the support of documentation and promises. The issue is raised later during registration, possession, and loan processing when the difference is noticed.
Real-life incident: In Bangalore, a recent case surfaced with a developer because of the complaints that were being registered at the police station. The developer was booked after they were alleged to be selling the same flat to a number of buyers.
The single flat also had multiple home loans secured in its name. This case immensely worried the buyers because they were under financial pressure without the guarantee of clear ownership and a solution.
Warning Signals of a Scam
Real estate scams begin with minor issues in clarity, fast-paced discussions, or even the paperwork that seems official. If you can identify these shortcomings early, you might have enough time to save your money and documentation:
- Do not fumble under any kind of pressure: If you are being forced to make a decision quickly without enough time to assess the documentation or are pressured to pay, take a moment question accordingly.
- Get it written: Costing, possession, terms and conditions regarding payment should ideally be put in writing or printed on paper and should not be promised verbally.
- Be cautious of delayed documents: If the basic set of official paperwork is postponed, shared in parts, or kept aside without any logical answer/ reasoning, it’s an obvious sign for you to be more cautious.
- Ensure before you make any type of payment: If a dealer asks for a payment before any site visit, ideal paperwork, or confirmation of their identity is a genuine warning sign.
- The deposition should be traceable: Payments related to real estate should, without a doubt, be consistent with official documents and easily traceable. If this is not the case, then it's concerning.
Legal Situations and Outcomes
Real estate fraud can legally lead you to recovery efforts, legal proceedings, and settlement disputes, but the actual result primarily relies on the evidence. In the majority of cases, the law stands taller and stronger to support you, but the process might take different durations and approaches:
When and how criminal law is enforced
An FIR or a police complaint could easily be filed if it is a case of cheating, scam, or forgery. As the complaint is followed, it will lead to an investigation, arrests, and charges. Cases like these solely depend on punishments and accountability.
Approaching civil courts for money recovery and contractual losses
People who are affected by such fraud can also file a civil case in order to pull out of agreements, reclaim their money, and demand compensation for damages. Civil proceedings address the concern regarding refunds, ownership rights, and repayment of the damages done.
How legal issues can stop property transactions
Once the case is registered or reported, the property becomes an integral part of the overall case. Further in the process, the sale, ownership and registration of the same can be put on hold until and unless the problem has been resolved.
Court orders for recovery and their practical difficulties
The court can raise the request for reimbursement, but the ability to recover funds depends on the financial condition and cooperation of the accused person.
Support from consumer courts and regulatory bodies
You conveniently have the option to file a complaint with consumer forums and real estate officials. These bodies can help you with the authorisation of interest, corrective steps, refunds, and penalties, depending on the facts.
To Sum It Up
Real estate scams are successful when the person investing is not adequately aware, and the decisions are made in a hurry. You do not experience such unpleasantness out of nowhere, but when you miss integral verifications, unclear documentations, and the urgency to act as quickly as possible. It doesn’t matter if issues are about online interactions, possession, early-stage offers, rental agreements, or sales overlap. The process is consistent in all cases. Uncertainty ultimately leads to clear risks.
Your approach should be systematic and calm in such cases. Detailed and organised documentation, verifiable payments, formal written agreements, and ideal legal assessments could keep your positioning out of any real estate scam.
Frequently Asked Questions
1. What are the most common real estate scams in India?
Ans. In India, you will simply witness or hear about misleading ownership/ authorities, made-up project promises, oversmartness in online listings, rental deposit scams, and instances where a particular property is sold to multiple people.
2. How can homebuyers identify a real estate scam?
Ans. Homebuyers can identify a real estate scam by observing factors like urgency in payment requests, verbal promises lacking any written documentation, unclear or changing details, and if the seller is reluctant to provide them with official documents.
3. Are online property listings safe in India?
Ans. No, these listings can definitely be helpful to you, but they are not always secure. You are advised to first check the property in person, make sure you have a genuine identity of the owner and the builder. Also, verify official documents before making even the tiniest payment and sharing details.
4. What documents should be verified before buying a property?
Ans. You can simply verify the ownership and title records, details on hindrances (if any), the sale contract and ownership history, and completion status. Also, authorised construction blueprints and licenses, the identity and authority of the seller, and tax records can help. And if your project is under construction, you are advised to confirm project approvals and legal rights to sell.
5. How do fake builders and brokers scam buyers?
Ans. The scammers make use of professionals and attractive marketing, strong assurances, and rapid conversations. It is quite common for scammers to push you towards early payments, suspicious and incomplete documentation. They can also inform you of your eligibility for special/elite or limited access so that you can take action as quickly as possible.
6. What should I do if I suspect a real estate scam?
Ans. You should stop any kind of payment on the spot. Do not share any type of document. Keep your proof and try to take legal action as soon as possible. If you have completed every step the scammers have been assisting you with, you should file an FIR or complaint at the nearest police station
7. How can buyers protect themselves from property fraud?
Ans. Check the authority and the identity, verify the documents, and keep all the agreements in writing. Also, make only payments about which you are sure are traceable to the concerning official account along with proper receipts.
