Gurgaon Real Estate Scam: CEO Arrested After Selling Same Flat to 25 Buyers — What Property Buyers Must Verify Before Purchase
Rs 500-Crore Fraud at 32nd Avenue Highlights Risks in Real Estate Transactions
Experts Urge Buyers to Cross-Check Title Deeds, RERA Registration, and Encumbrance Certificates
By Legal Reporter
New Delhi: February 10, 2026:
In one of the biggest real estate scams in Gurugram, police arrested Dhruv Dutt Sharma, CEO of the 32nd Avenue project, for allegedly selling the same commercial property unit to more than 25 buyers. The fraud, estimated at ₹500 crore, has shaken investor confidence and raised urgent questions about due diligence in property transactions.
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The case underscores the importance of verifying legal documents and ownership records before purchasing property. With real estate scams becoming more sophisticated, buyers must be vigilant to avoid falling victim to fraudulent practices.
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Background of the Case
- The accused allegedly sold a 3,000 sq. ft. commercial floor in the 32nd Avenue complex multiple times between 2021 and 2023.
- Buyers were lured with promises of assured rentals and buyback options.
- Ownership documents were never handed over, and the same property was resold to different investors.
- The Economic Offences Wing (EOW) arrested Sharma after complaints were filed, revealing losses running into hundreds of crores.
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Key Documents Buyers Must Verify Before Purchasing Property
To avoid falling into similar traps, property buyers should cross-check the following records:
- Title Deed
- Confirms ownership of the property.
- Must be in the seller’s name and free of disputes.
- Encumbrance Certificate (EC)
- Shows whether the property has any legal dues, loans, or mortgages.
- Essential to ensure the property is not pledged elsewhere.
- RERA Registration
- Under the Real Estate (Regulation and Development) Act, 2016, all projects must be registered with RERA.
- Buyers should verify the project’s RERA number and details on the official portal.
- Sale Agreement and Possession Letter
- Clearly outlines terms of sale, payment schedule, and possession date.
- Must be registered with the sub-registrar’s office.
- Approved Building Plan and Occupancy Certificate
- Confirms that the property complies with municipal regulations.
- Ensures the building is legally fit for occupation.
- Mutation Records and Tax Receipts
- Mutation records show transfer of ownership in municipal records.
- Property tax receipts confirm there are no pending dues.
- No Objection Certificates (NOCs)
- From local authorities, banks, and housing societies.
- Prevents future disputes over land use or ownership.
Legal Significance of the Case
- Consumer Protection: Reinforces the need for strict enforcement of RERA and property laws.
- Judicial Oversight: Courts and regulators may tighten scrutiny of developers.
- Investor Awareness: Encourages buyers to demand transparency and documentation.
- Industry Impact: Could lead to stricter compliance norms for developers and brokers.
Broader Implications
- For Buyers: Must adopt a checklist approach before investing in property.
- For Developers: Transparency and compliance will be key to restoring trust.
- For Regulators: Stronger monitoring of real estate transactions is needed.
- For Society: Highlights the risks of speculative investments in commercial property.
Conclusion
The Gurgaon real estate scam is a stark reminder that property buyers must exercise extreme caution. By verifying title deeds, encumbrance certificates, RERA registration, and other key documents, buyers can protect themselves from fraud. The case also highlights the urgent need for stricter enforcement of real estate laws to safeguard investors and restore trust in the sector.
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