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A major commercial property fraud case in Gurugram has widened after police arrested the director of a real estate firm for allegedly selling the same building floor to more than 25 buyers. The case surfaced following a complaint by a corporate buyer that paid INR 2.5 crore for a unit but never received registered ownership. Investigators later found that the same floor was repeatedly sold and then leased back through another company. The alleged fraud is estimated at around INR 500 crore and is under investigation by the Economic Offences Wing.
A senior executive of a Gurugram-based real estate group has been arrested in connection with a large-scale property fraud involving the repeated sale of a single commercial floor to multiple buyers. The accused, who served as director and chief executive of 32nd Avenue and its associate entity 32nd Milestone, is alleged to have caused losses of nearly INR 500 crore to investors by selling the same floor to over 25 individuals and companies. Advertisement
The case came to light after Tram Ventures Private Limited approached the police, stating that it had entered into an agreement in 2021 to purchase a 3,000 sq ft unit on the first floor of the 32nd Milestone commercial complex in Gurugram. The company paid INR 2.5 crore for the property and signed the sale agreement, but the conveyance deed was never registered in its favour.
During preliminary checks, investigators found that despite the earlier agreement, the same floor was sold again to several other buyers over the next two years. Police records show that these transactions continued without clear disclosure to previous purchasers, raising concerns over misrepresentation and breach of trust.
Further investigation revealed that after selling the floor to multiple buyers, the accused allegedly arranged to lease back the same space for a period of 30 years under a different entity, Growth Hospitality Private Limited. Officials believe this structure was used to retain control of the property while collecting funds from buyers.
An FIR was registered at the Civil Lines police station, following which the Economic Offences Wing took over the probe. The accused was produced before a local court and remanded to police custody for further questioning. Authorities are now examining transaction documents, bank records and lease agreements to determine the full scale of the alleged fraud and identify any additional parties involved.
The case has once again highlighted gaps in due diligence by buyers and the importance of timely registration of property documents, particularly in commercial real estate transactions.
Source PTI
FAQ
Q1. What is the Gurugram real estate fraud case about?
The case relates to an alleged large-scale commercial property fraud in Gurugram where a senior executive of a real estate group is accused of selling the same floor of a commercial building to more than 25 buyers. The repeated sales were allegedly carried out over several years without transferring registered ownership to earlier purchasers, resulting in substantial financial losses.
Q2. Who has been arrested and what role did he play?
Police have arrested a director and chief executive associated with 32nd Avenue and its linked entity, 32nd Milestone. Investigators allege that he played a central role in executing sale agreements with multiple buyers for the same commercial floor and managing related transactions through associated companies.
Q3. How did the alleged fraud come to light?
The case surfaced after Tram Ventures Private Limited filed a complaint stating it had paid INR 2.5 crore in 2021 to buy a 3,000 sq ft commercial unit at the 32nd Milestone complex. Although a sale agreement was signed, the conveyance deed was never registered. Subsequent checks revealed that the same floor had been sold repeatedly to other buyers.
Q4. What pattern did investigators uncover during the probe?
Police found that despite existing sale agreements, the floor continued to be sold to new buyers over the next two years. Investigators also discovered that the property was later leased back for 30 years through another company, Growth Hospitality Private Limited, allegedly allowing the accused to retain control of the space while raising funds from investors.
Q5. What is the estimated scale of the alleged fraud and who is investigating it?
The total value of the alleged fraud is estimated at around INR 500 crore. An FIR was registered at the Civil Lines police station, after which the Economic Offences Wing (EOW) took over the investigation. Authorities are examining sale deeds, lease agreements, and bank transactions to assess the full extent of the wrongdoing.
Q6. What broader issues does this case highlight for property buyers?
The case underscores the risks involved in commercial real estate transactions, particularly the importance of thorough due diligence and timely registration of property documents. It also highlights how complex ownership and lease-back structures can be misused, reinforcing the need for buyers to verify title clarity and registration before releasing full payments.
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