• Property dealer fraud

Hello.. I sold my ghaziabad flat for 40L to a party which i was never allowed to meet by my property dealer. Whenever asked he made excuses like buyer is not available or out of city.

Now,Though registry is done and I have received full promised payment of 40L. 

When i met the new owner I came to know he has purchased my flat for 48L actually and his property dealer also did not let him to meet me before registry with excuses that i m not available.

This way keeping both seller and buyer blind, both dealers have cheated and taken 8L from the deal. 

There has been transactions in cash.
Please guide me I can do anything or not, if yes what is the process.

Asked 3 years ago in Property Law from Ghaziabad, Uttar Pradesh
Hi, you may file police complaint for cheating even though transaction taken place in cash but both seller and buyer are there for give evidence.
Pradeep Bharathipura
Advocate, Bangalore
4561 Answers
204 Consultations

4.5 on 5.0

1) There was a nexus between the agents and they connived to keep you both in dark and pocketed 8 lacs and certainly have divided the booty once the deal came through.

2) Though your transaction was in cash, which was at the agents' behest intentionally to avoid proof of payment, there are remedies available to you in recovering the amount from these fraudsters.

3) There are still some questions: why did the purchaser pay 48L when the sale agreement showed 40L as the consideration? Or was the value shown on the agreement lower and a different one so that the diparity in amount would not arise at all? I suppose that was the case.

4)You need to send a legal notice to your agent demanding the surplus of 8L that he sold the flat for keeping you in the dark about the deal he secretly made behind your back with the buyer's agent. Advise the buyer to send a legal notice at the same time to his agent the return of the excess amount he pocketed,

5) If the agents do not return the money or come up for a settlement do file a police complaint.You both can make a complaint at the same time attaching a copy of the legal notice.
S J Mathew
Advocate, Mumbai
2263 Answers
110 Consultations

5.0 on 5.0

1. You did not exercise due diligence before making the sale. Consequently, you and the current owner have been cheated of your money by the property dealers. Property should never be sold or brought without personally meeting the prospective purchaser or seller. 

2. It is unfathomable to me as to why the purchaser paid 48 lakhs if the consideration in the agreement stood at 40 lakhs. I presume that the agreement whereon the purchaser signed in which the sale consideration was settled at 48 lakhs is not the agreement which you signed on. You and the purchaser displayed a cavalier approach. 

3. Coming to the legal remedies, it is your own statement that the amount was paid in cash. If no receipt of the amount was issued by the purchaser then going to the court to recover the money will be an exercise in futility. To stand on your legs in the court you need documentary proof to show that the amount paid by the purchaser was 48 lakhs and not 40 lakhs. The property dealers will find an easy escape route in the court. 

4. You may, however, file a criminal case for cheating in the court against the two property dealers who acted in collusion to cheat you and the purchaser. You can unilaterally file a criminal case for cheating against the property dealers, or you and the purchaser may file it together.  A criminal case acts as a huge deterrent in as much as the property dealers may have to go to jail if they are denied bail. So they may just offer to return the money in entirety or a substantial portion of it. .
Ashish Davessar
Advocate, Jaipur
23092 Answers
639 Consultations

5.0 on 5.0

1) you have been grossly negligent . you never met the purchaser before finalisation of sale

2) you agree to sell your flat for Rs 40 lakhs . agreement reflects full amount of consideration as agreed with the agent . 

3) you have no evidence that sale was for Rs 48 lakhs  as Rs 8 lakhs was paid in cash by purchaser to the agent . 

4) it would be difficult for you to obtain any reliefs from court as you have been paid consideration agreed upon . 

5) if both you and purchaser join hands may be you can obtain some amount from the dealers by filing case of cheating against the dealers
Ajay Sethi
Advocate, Mumbai
46645 Answers
2759 Consultations

5.0 on 5.0

1. Did you enter into any agreement with the property dealer?

2. If not then it will be difficult for you to bring chatge against him legally,

3. Did you not  register the sale deed? If yes, then why did you not ask buyer about the price at the time of restering the deed?

4. When & whom did the buyer pay such huge amount in cash? He has takaen huge risk, if he has paid to the dealer the sales proceed, all in cash,

5. Moreover, paying such huge amount in cash is also not legal as per I.T Act,

6. It will be prove the dealers such illegal act for want of documents.
Krishna Kishore Ganguly
Advocate, Kolkata
18741 Answers
452 Consultations

5.0 on 5.0

A. Had entered into any agreement in respect of Sale? What were you doing while registering the property before the Sub Registrar Office, before putting signature or completion of photo session, you could have asked the buyer in respect of consideration amount.

B. The same practice is going on in Karnataka also, you and the purchaser can lodge the police complaint jointly under the cheating.

C. In the absence any documentary evidence, or at least recording the telephone conversation, it is a very difficult to  recover the amount due to cash transaction happen.
B.T. Ravi
Advocate, Bangalore
835 Answers
57 Consultations

5.0 on 5.0

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