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Fraudster dupes 16 homebuyers of INR 40 lakh in PMAY housing scam in Vadodara

#Law & Policy#India#Gujarat#Vadodara
Last Updated : 24th Mar, 2026
Synopsis

A fraud case linked to the Pradhan Mantri Awas Yojana (PMAY) has surfaced in Vadodara, where 16 individuals were allegedly duped of around INR 40 lakh by a person posing as a civic official. The accused promised affordable housing units under the government scheme and collected money under the guise of processing fees and allotment procedures. Victims were provided forged documents, including fake receipts and fabricated municipal approvals. The incident highlights persistent vulnerabilities in affordable housing awareness and verification mechanisms, as demand for subsidised housing continues to attract fraudulent intermediaries exploiting first-time homebuyers.

A case of housing fraud has emerged in Vadodara, where a man allegedly cheated 16 individuals of nearly INR 40 lakh by falsely offering flats under the Pradhan Mantri Awas Yojana, according to police findings.


The accused, identified as Harish Chauhan, reportedly posed as an agent associated with the Vadodara Municipal Corporation and convinced prospective homebuyers that he could secure them residential units under the government-backed affordable housing scheme. He allegedly collected payments under various pretexts, including application charges and procedural fees, while assuring early allotment.

One of the complainants stated that she and her family approached the accused while seeking to purchase a house. The accused informed them that completion of certain formalities was necessary before allocation and subsequently demanded payments in instalments. The complainant reportedly paid around INR 6.83 lakh and received receipts and documents bearing what appeared to be official municipal stamps, later found to be forged.

As victims sought possession or confirmation of allotments, the accused allegedly began avoiding communication and eventually shut down his office. Investigations revealed that at least 15 other individuals were similarly defrauded, with the total amount collected estimated at around INR 40 lakh. The accused is currently absconding, and a police case has been registered.

The incident underscores the risks associated with informal intermediaries in government housing schemes. PMAY allocations are typically conducted through official channels, including transparent application processes and lottery-based allotments, leaving little scope for third-party agents to guarantee housing.

Such cases reflect a broader challenge in the affordable housing segment, where high demand and limited awareness among buyers create opportunities for fraudulent practices. Authorities continue to advise applicants to rely solely on official government portals and authorised agencies while verifying documentation before making any financial commitments.

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