Learn property fraud remedies in India, including sale deed cancellation, declaration, injunction, possession and criminal action for cheating or forgery.
The dream of owning your house or land should make an owner feel safe and secure. However, emotions can turn into frustration when you discover that someone has forged a sale deed or power of attorney in your name. Someone has impersonated you and tampered with records, sold the property to another buyer or taken possession without consent.
Property fraud does not simply relate to title. It can implicate civil and criminal law. Parties can seek cancellation of documents, declaration of title, claim to possession and urgent injunctive relief.
One problem property owners face in Delhi NCR or anywhere else in India is identifying what took place. Perhaps you only became aware of a registered document you donât recognise when you checked the registration index. Someone may have unlawfully occupied your property in another circumstance. Maybe a family member allegedly used a power of attorney after your death. Otherwise, you bought land but then received information that your seller was never the owner.
According to Advocate BK Singh, owners should focus on the proof. âDonât assume what may or may not have happened,â says Singh. âGo through title, registered records, revenue or municipal documents, proof of possession, correspondence and identity papers. They will tell you what you need to dispute and what remedy applies to your circumstances.â
Itâs critical to understand that criminal cases and civil remedies seek different results. The filing of a criminal complaint is aimed to punish. Someone can be punished for cheating, forgery or impersonation. Civil lawsuits may instead be required to declare title, cancel/set aside an instrument, restrain dispossession and seek other relief.
The nature of the transaction, documents, a personâs current title and/or possession status, knowledge of the fraud, discovery of fraud and bars of limitation will factor into what remedy applies.
Whether residential or commercial, property can be susceptible to fraud. Issues become heightened if the fraudulent deed is used for further transactions or creating a third-party interest in the property.
There have been instances of fraudulently created sale deeds or other transactions used to gift property in Delhi NCR. Forgeries can include agreements, powers of attorney, wills, family settlement agreements, inheritance documents, mutation or government record tampering, loan/record of possession documents and financing transactions.
Property buyers or owners encounter the same issues in Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad and Jaipur.
Singh recommends seeking legal recourse the moment you notice any irregularities in a property document. âTake notice of an unusual transaction that concerns your property as if it were a matter of life and death,â Singh states. âDonât wait for someone to file a lawsuit against you or for the property to be sold again. Act immediately to prevent future problems.â
Donât hesitate to speak with a lawyer even if the property has been sold. Failure to take action immediately does not necessarily prevent every claim right away. You will always be bound by limitation. The Supreme Court has clarified over multiple judgments that suits for cancellation, declaration and suits for title must be framed at the time of institution and cannot be imbued with a prayer for another remedy for the purpose of avoiding limitation.
Property fraud encompasses all fraudulent acts which are intended to transfer, dispose, encumber, take or obtain property by cheating someone using false documents, impersonating another individual or through concealment. Basic examples would include signing a sale deed as the owner of property when you are actually someone else. Or forging someone elseâs signature who holds a Power of Attorney (POA) or using a POA that is forged.
Fraud can be harder to identify. Concealing a previous sale from taking place, could allow someone else to transact over the same property. Under Bharatiya Nyaya Sanhita, 2023 cheating has been expressly included to involve situations where a person is dishonestly induced to deliver any property.
If a person uses a forged document as genuine, or a forged electronic record, they would become liable under Section 340. If that person knows the document is forged or has reason to believe it is forged.
Each circumstance will have to be analyzed by what the documents and evidence shows. Cheating or fraud does not become valid only because a transaction was null and void.
There are many remedies available based on what transpired with the property and what you want a court or authority to do about it.
Under Section 31 Specific Relief Act, 1963, a person entitled to any legal character or to any right as to property, may institute a suit to have any instrument in writing, which is void or voidable at his option, and which purports to confer on any other person any legal character or any right as to such property, or to be registered as a document affecting such property, cancelled.
Section 31 also provides that where a registered instrument is cancelled by a decree, a copy of the decree shall be forwarded to the registration officer and the cancellation of the instrument shall be entered in his register.
Civil courts have held this remedy applies where an owner claims that a fraudulent sale deed, gift deed or other registered instrument has been impacting their rights adversely. The suit would have to be framed based on the analysis of the document and the facts relating to title.
Any person who is entitled to any legal character or to any right as to property, may sue for obtaining a declaration of his character or right, in respect of that character or right.
Where someone files a lawsuit challenging your title as an owner, this suits applies perfectly. Plaintiffs cannot file a declaration suit if they require further relief and have an alternate remedy ( except the court comes to the conclusion that it would not be in consonance with public policy not to grant such declaration ). Therefore, find out if you require more remedies before filing.
Under Section 39 Specific Relief Act, 1963, when a plaintiff requires immediate protection or justice against an act of the defendant, or to prevent his doing of a wrongful act for which he has no specific remedy, he may obtain such relief by way of temporary injunction.
Owners should consider attempting to stop the further transaction of property if they anticipate wrongful action in the near future. For example, civil courts have recognised that if the disputed property is sold again to someone else, built upon, mortgaged or placed under the possession of a buyer it will cause more harm.
BK Singh recommends gathering proof of the threat and speaking with a lawyer instead of taking matters into your own hands. An injunction can protect the property from being sold further, but false claims can land you in legal trouble.
As mentioned before, if you have been unlawfully disposessed or someone is in possession of your property without any legal ground, you may be able to file a suit for recovery of possession.
There are multiple types of claims that involve taking back possession of property. The facts related to ownership title, history of possession, type of occupation and adverse limitation rules will play a major role in what suits apply.
Singh says courts have allowed plaintiffs to plead his right or title along with a suit for possession of property where necessary. With that being said, donât fabricate stories about illegal possession.
Filing a criminal complaint will only be feasible if the evidence proves that someone cheated you, forged documents, created a fake power of attorney or impersonated you. Civil remedies should always be evaluated first.
Criminal offences under the BNS would take effect from 1 July 20 24 until today. Offences committed after that date would be charged under BNS and not IPC.
Who can file? Victims of cheating and property fraud can file. Typically, owners, family members, legal representatives and immediate successors in interest.
Multiple statutes can apply when cheating and property fraud is alleged. Depending on what the fraud relates to, more than one law can enable relief.
The Specific Relief Act, 1963 deals with cancellation, declaration and certain types of injunctions.
The Bharatiya Nyaya Sanhita, 2023 would apply if the fraudulent acts constitute cheating, cheating by personation, forgery and/or any similar offenses.
Registration Act, 19 08, Transfer of Property Act, 18 82, Limitation Act, 1963 (for limitation periods) will also apply. Revenue laws of the state and state property laws may apply based on the nature of the property transaction.
RERA, Consumer law, Succession act and/or contract law principles may even have applications in some cases.
Anyone who believes their property was illegally transacted without their consent. Here is a list of people who typically require legal advice:
Seeking legal representation can be critical if you reside in a city that isnât where your property is located. At times it becomes necessary to travel to collect important documents, appear in person and handle the lawsuit on your behalf.
Get all your title documents together and try to locate the fraudulent sale. Obtain copies of the suspicious registration if necessary and cross reference the identities on the deed versus the ownerâs true identity and title proof.
Speak to people involved in the transaction. Did you inform anyone about selling or registering a property? If you sold the property did you provide proof of payment? Was anyone else living in your house that couldâve forged your signature or created a fake PoA?
Second, secure emails, payment information, photographs, evidence of possession and anything else that could strengthen your story.
You lawyer will be able to tell you if your situation suggests a civil lawsuit, cancellation/ declaration suit, injunction, possessory related suit, criminal complaint or some combination of remedies.
Feel free to speak with Advocate Singh about your general legal concerns. He can review what documents you have and provide a general overview of what you can do legally before you decide to file a lawsuit.
Gathering and secure proof will matter if you plan on fighting against property fraud. Remember courts will believe whatâs on paper over your words.
Documents that will assist you:
Consult a lawyer when you discover any of the following:
Consulting with a lawyer doesnât guarantee you will receive relief or a certain result. What it does allow you to do is understand what legal options you have from a professional. You donât want to wait too long and let facts become tainted or miss the opportunity to file a lawsuit because of limitation.
Property fraud can become complicated which is why many owners only want to send a legal notice. Itâs important to understand title and what Transaction is being disputed together.
Advocate Singh can help review your documents, provide a title linked legal opinion, analyse cancellation and declaration opportunities, protect your right to possession through injunction related relief and help you strategise civil and criminal remedies if needed based on facts.
Lawyers located in Delhi NCR ( Delhi, New Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad, Meerut, Hapur) face the same problem of realizing the proper forum and relief at the very beginning. You would be wasting time and money if you pick the wrong forum and file a lawsuit or complaint.
Clients outside of Delhi NCR such as Lucknow, Kanpur, Prayagraj, Varanasi, Agra, Jaipur, Chandigarh, Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata and Ahmedabad ( to name a few more ) can also contact me.
In conclusion, walk in knowing the basics about your documents and walk out knowing what legal issue youâre up against. There should at least be one remedy you can pursue after meeting with your lawyer. Ownerâs should not leave with promises of something that cannot be done.
Ans. Secure all your documents and proof of title safely, try to find out information about the second sale and consult with a lawyer as soon as possible about your civil and criminal options. Property owners can file cancellation, declaration and injunction suits to prevent further sale. Someone who cheated you can also be criminally prosecuted.
Ans. Potentially yes. If a registered document is void or voidable you can challenge the transaction with the filing of a lawsuit. You can also file an application or suit under Section 31 of Specific Relief Act.
Ans. Yes you can. If offences such as cheating, cheating by personation and forgery can be proven with evidence, certain sections of the Bharatiya Nyaya Sanhita will apply. Do not limit yourself to only one criminal offense. There could be multiple offenses based on what the other party did.
Ans. No itâs not final if you have proof of ownership. Just because a sale deed was registered does not mean civil disputes cannot be filed against the property. A person who sold their property without authority, fraudulently or without your consent will have to answer to your claims.
Ans. Yes. Transactions through a forged or unauthorised power of attorney are often reversible. Civil remedies would be dependent on the power of attorney, if the person had underlying authority to execute a POA, how it was executed and what transactions were completed after the fake POA was used.
Ans. You may file a suit for possession of property against the person in possession. You can seek injunction related relief alongside a declaration or cancellation remedy.
Ans. Mutation is not by itself proof of title. Mutation will only help as evidence to prove your ownership if it favours your claim and applies according to law.
Ans. Any information you have regarding your property purchase, suspicious transactions and already filed legal cases.
Ans. Yes, there is a limitation for filing a civil lawsuit. No, you can file a criminal case at any time when cheating and fraud is proven. Advise would need to be taken from a lawyer early on about what your remedies are and the timelines for filing suits.
Ans. Legal advice and help is provided for individuals who own property in Delhi NCR as well as outside of Delhi. Providing the property falls under a specific geographic location, local property lawyers can help you understand what forum applies and discuss the matter.
Delaying will not allow a property owner to effectively fight against fraud. Whether you believe a fake sale occurred in your name or someone has taken your land using a fake Power of Attorney.
Suspicious sale deed, fake signature, impersonation, misuse of POA, wrongful transfer should all be investigated further. Get your documents in order to start and try to figure out what has actually been registered. Civil suits seek declarations/cancellations and property recovery.
Crime is punishable by criminal courts. Ownerâs should speak with Advocate BK Singh to understand the various legal remedies available to them once he reviews the facts and documentation related to your case.
Just noticed someone cheated on your property in Delhi NCR or India? Contact our firm to get started on legal options like cancellations suits, declaration suits, injunctions, possession suits and understand the criminal remedies that apply before it becomes too late.
Speak directly with Advocate BK Singh at LEGAL365.
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