A major property scam has been uncovered in India, exposing how fraudsters cheated buyers of more than Rs 200 crore by selling fake or disputed luxury properties. The scam came to light after the arrest of five people in a Rs 12.04 crore fraud case involving a non-existent flat at DLF Camellias in Gurugram, according to a report by The Indian Express.
The case was investigated by the Delhi Police Crime Branch, which found that the accused used forged bank auction documents falsely claiming to be issued by the State Bank of India (SBI). These fake documents were repeatedly used to convince buyers that premium properties were being sold at discounted rates through bank auctions.
In August 2024, a woman looking to buy a house in Gurugram was introduced to Abhinav Pathak, a medicine distributor. He claimed that he could arrange a luxury flat at DLF Camellias for Rs 12.04 crore, which was nearly half of its market value. Pathak told the buyer that the property had been acquired through a bank auction, which explained the lower price.
Soon after, representatives of M/s MG Leasing & Finance showed the woman several documents, including sale certificates, auction receipts and covering letters. These documents appeared to be issued by SBI but were later found to be completely fake.
Between August and October 2024, the buyer transferred Rs 12.04 crore through RTGS and demand drafts. The fraud was discovered only when the bank confirmed that none of the documents were genuine. A police complaint was finally registered on June 13.
During the investigation, police traced the money to a proprietorship firm owned by Mohit Gogia. Raids were conducted in Delhi-NCR, Bhopal and Mumbai, but Gogia went into hiding. Using technical surveillance, police tracked him down and arrested him on November 22 near Doiwala on the Rishikesh–Dehradun Road, while he was trying to flee from Mumbai.
Gogia’s arrest led to the detention of four more accused. Police said Vishal Malhotra, a property dealer, opened a current account in HDFC Bank to move the fraud money and withdrew large amounts to pay commissions to Ram Singh, also known as Babaji. Another accused, Sachin Gulati, allowed his IDFC First Bank account to be used for rotating funds, while Bharat Chhabra created fake property and auction documents using specialised software. Abhinav Pathak, who introduced the buyer to the deal, also received a share of the money.
A nationwide and repeated scam
According to police, Mohit Gogia targeted mortgaged, disputed or completely fake properties and created forged title deeds and bank auction papers. The money collected from buyers was routed through multiple bank accounts and firms to hide its source.
The funds were eventually transferred to Babaji Finance, run by Ram Singh, where the money was circulated at high interest rates. Police said Gogia kept around 40 percent of the profits, while Singh took the remaining 60 percent.
Police records show that Gogia is wanted in 16 similar cases across Delhi, Punjab, Madhya Pradesh and Goa since 2019. All these cases involve forged mortgage or bank auction documents.
Investigators believe the scam took advantage of the growing belief among buyers that bank-auction properties are safe and cheaper deals, especially at a time when luxury property prices in the NCR are rising. By using fake bank documents, the fraudsters created a false sense of trust and legitimacy, making the scam more convincing and dangerous.
