If you suspect a real estate project of being fraudulent, here are some steps you should take:
- Stop all payments - Immediately stop making any further payments, down payments or installments to the developer. Do not release any more funds until you verify the project details.
- Check with RERA - File a complaint with the Haryana RERA regarding the fraudulent practices by the developer. Provide details of false information, lack of approvals, diversion of funds, etc. RERA can investigate the project and take action against the developer. They can also advise you on the next steps.
- Consult a lawyer - Meet with a real estate lawyer regarding your options and legal recourse. The lawyer can issue a legal notice to the developer, file cases in consumer courts or pursue criminal cases if funds have been misappropriated. They can guide you on recovering your money or obtaining alternate remedies.
- Warn other buyers - Use social forums and media to warn other potential buyers about the fraudulent aspects of the project. Post factual details about your experience without making unverifiable claims. Educating other buyers can limit the scale of fraud. Provide information to help others conduct proper due diligence.
- Contact police - For serious fraud amounting to cheating, misappropriation of funds or forgery, lodge a FIR against the developer at your local police station. Provide documentary evidence to support your case. The criminal investigation may lead to arrest and charges against the culprits. But police cases tend to move slowly through the legal system.
- Notify banks - If you have taken a housing loan for purchasing in the project, notify your bank about the fraud. Banks can take action by stopping further disbursals to the developer and pursuing them to recover their funds. They may also investigate other projects where they have offered loans. Inform all banks involved in financing the project.
- Meet other buyers - Try to connect with other buyers in the same project who have also been victims of the fraud. Meet with them in person to discuss the available options and action that needs to be taken collectively. There is strength in numbers, so a united effort will be more effective in tackling the developer.
- Consider project takeover - As a last resort, you could consider taking over the project collectively with other buyers and investors. By paying off the remaining development costs, you may be able to complete construction and minimize individual losses. But this step depends on willingness and finances of all parties involved.
So act promptly if you suspect fraudulent practices in a real estate project. Time is of essence before the developer disposes assets and vanishes.
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Posted by Deb Lipscomb on March 05, 2025 at 11:05