The Top 10 Real Estate Scams in India
The Top 10 Real Estate Scams in India
Real estate scams have been a pervasive problem in India for years, with unscrupulous developers and promoters exploiting homebuyers and investors. These scams come in different forms and sizes, ranging from fraudulent land deals to illegal constructions and property title disputes. In this article, we will discuss the top 10 real estate scams in India over the years, detailing the amount involved and the year of occurrence.
Amrapali Group Scam – Rs 11,000 crore (2019)
The Amrapali Group Scam is one of the biggest real estate scams in India, involving the diversion of funds from 46 real estate projects in the National Capital Region (NCR). The company allegedly siphoned off over Rs 11,000 crore from homebuyers and investors, leading to the cancellation of its real estate licenses by the Supreme Court.
Unitech Scam – Rs 7,800 crore (2011-2016)
The Unitech Scam is another high-profile real estate fraud in India, involving the diversion of over Rs 7,800 crore from 74 real estate projects across the country. The company reportedly failed to deliver the promised housing units to its customers, resulting in legal actions and multiple arrests of its promoters.
Housing.com Scam – Rs 70 crore (2016)
The Housing.com Scam involved the falsification of data by some of the company’s top executives, leading to the wrongful valuation of the company’s assets and properties. The scam caused a loss of Rs 70 crore to the company’s investors and led to the ouster of its CEO.
Jaypee Infratech Scam – Rs 3,000 crore (2017)
The Jaypee Infratech Scam involved the diversion of funds from several real estate projects in Noida and Greater Noida, leading to the insolvency of the company. The scam caused a loss of over Rs 3,000 crore to homebuyers and investors, resulting in legal actions and takeover by the government.
Parsvnath Developers Scam – Rs 1,200 crore (2017)
The Parsvnath Developers Scam involved the non-delivery of promised housing units to its customers, resulting in legal actions and protests by aggrieved buyers. The scam caused a loss of over Rs 1,200 crore to homebuyers and investors, leading to the cancellation of the company’s real estate licenses.
Nirmal Singh Bhangoo Scam – Rs 45,000 crore (2014)
The Nirmal Singh Bhangoo Scam involved the illegal sale of agricultural land to investors, resulting in the diversion of over Rs 45,000 crore. The scam led to the arrest of the main accused and the recovery of assets worth over Rs 1,000 crore.
DLF Scam – Rs 300 crore (2011)
The DLF Scam involved the illegal diversion of funds from several real estate projects in Haryana, leading to the imposition of a fine of Rs 300 crore by the Competition Commission of India. The company also faced legal actions and protests by its customers and investors.
Ramalinga Raju Scam – Rs 7,000 crore (2009)
The Ramalinga Raju Scam involved the falsification of financial records by the founder of Satyam Computers, a leading IT services company. The scam caused a loss of over Rs 7,000 crore to investors and led to the collapse of the company.
Sahara Group Scam – Rs 24,000 crore (2014)
The Sahara Group Scam involved the illegal collection of funds from its customers and investors, leading to the diversion of over Rs 24,000 crore. The scam led to the arrest of the company’s founder and the imposition of a penalty of Rs 25,000 crore by the Securities and Exchange Board of India (SEBI).
Bhushan Steel Scam – Rs 2,000 crore (2018)
The Bhushan Steel Scam involved the diversion of funds from the company’s accounts by its promoters, leading to a loss of over Rs 2,000 crore. The scam led to the arrest of the main accused and the takeover of the company by Tata Steel.
These 10 real estate scams are just the tip of the iceberg in India’s complex and often opaque real estate sector. Despite the regulatory measures and legal actions taken by the government and the judiciary, the problem of real estate fraud remains a major concern for homebuyers, investors, and the public at large. It is, therefore, imperative to exercise caution and due diligence while investing in real estate projects and to hold the developers and promoters accountable for their actions.
| Serial Number | Scam Name | Amount Involved | Year |
|---|---|---|---|
| 1 | Amrapali Group Scam | Rs 11,000 crore | 2019 |
| 2 | Unitech Scam | Rs 7,800 crore | 2011-2016 |
| 3 | Housing.com Scam | Rs 70 crore | 2016 |
| 4 | Jaypee Infratech Scam | Rs 3,000 crore | 2017 |
| 5 | Parsvnath Developers Scam | Rs 1,200 crore | 2017 |
| 6 | Nirmal Singh Bhangoo Scam | Rs 45,000 crore | 2014 |
| 7 | DLF Scam | Rs 300 crore | 2011 |
| 8 | Ramalinga Raju Scam | Rs 7,000 crore | 2009 |
| 9 | Sahara Group Scam | Rs 24,000 crore | 2014 |
| 10 | Bhushan Steel Scam | Rs 2,000 crore | 2018 |
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The Top 10 Real Estate Scams in India
