1. Introduction

Property continues to be one of the most valuable and sensitive assets for individuals and families in India. Every sale or purchase is expected to be a lawful transfer of rights, but unfortunately, the ground reality is far more complex. In recent years, several cases have emerged where so-called “buyers” turned out to be imposters, fraudsters, or opportunists. These fake buyers not only waste the seller’s time but also create long-drawn litigation and, in many cases, cause irreparable financial and emotional loss.

This article attempts to examine the issue in depth: who these fake buyers are, how they operate, what the law provides against them, and what precautions a property seller must observe.

2. Who Are Fake Buyers?

A fake buyer is not merely a person who backs out of a deal at the last moment. Instead, it refers to someone who enters a transaction with dishonest intent from the very beginning. Their objective is not to buy the property but to:

• Create false claims,
• Park black money,
• Delay the seller from finding genuine buyers, or
• Fraudulently obtain possession or ownership.

For instance, in Guntur, Andhra Pradesh, a man impersonated the true landowner and managed to register land worth crores by producing forged documents before the Sub-Registrar’s office. The fraud was unearthed only when the genuine owner’s family approached the authorities .

TOI Reports-

https://timesofindia.indiatimes.com/city/gurgaon/new-york-based-mans-gurgaon-plot-sold-for-rs-10-crore-through-fake-gift-deed/articleshow/123591970.cms?

3. Common Tactics Used by Fake Buyers

From a practitioner’s experience, fake buyers usually adopt the following strategies:

1. Forged Identity Proofs – Aadhaar, PAN, or even fake legal heir certificates.
2. Bounced Cheques – Handing over post-dated cheques to create an illusion of payment.
3. Misuse of Power of Attorney – Presenting a fabricated GPA or impersonators before the Sub-Registrar.
4. False Agreements to Sell – Filing civil suits later on the basis of such agreements to stall the property.
5. Collusion with Office Insiders – Fraudulent registration at Registrar/SDM offices, sometimes aided by unscrupulous staff.

A striking example is the Kowdiar Land Grab Case in Kerala, where forged Aadhaar and impersonation were used to transfer a prestigious property. The accused had first approached the real owner to gain confidence, and later fabricated documents to usurp the land.

(TOI Reporthttps://timesofindia.indiatimes.com/city/thiruvananthapuram/kowdiar-land-grab-case-accused-approached-owner-to-buy-property-before-forging-documents/articleshow/122889088.cms?

4. Legal Consequences

A. Criminal Remedies

• Cheating (Section 420 IPC / Section 318 BNS) – for dishonestly inducing the seller to deliver property.
• Forgery (Sections 467–471 IPC / Sections 336–344 BNS) – for creating and using false documents.
• Impersonation (Section 419 IPC / Section 317 BNS) – when fraudsters pose as genuine buyers.
• Dishonour of Cheques (Section 138, NI Act) – where earnest money is paid through cheques that bounce.

B. Civil Remedies

• Suit for Cancellation under the Specific Relief Act, where fraudulent documents are registered.
• Recovery of Advance Money with interest through civil action.
• Permanent Injunction to restrain further dealing with the disputed property.

C. Other Statutes

• Benami Transactions (Prohibition) Act – where property is transferred in the name of fictitious persons.
• Registration Act, 1908 – empowers cancellation of fraudulent registrations once proved.

5. Judicial Pronouncements

The Supreme Court of India has time and again emphasized that registration of a sale deed by itself is not conclusive proof of ownership.

• In Narandas Karsondas v. S.A. Kamtam (1977), the Court held that ownership passes only when title is lawfully conveyed, not merely on execution of a document.
• In a recent 2025 ruling, the Court reiterated that mere registration is insufficient; true ownership must be proved through title documents, possession, and revenue records (SC ruling news rephttps://economictimes.indiatimes.com/wealth/real-estate/property-registration-is-not-the-same-as-property-ownership-says-sc-know-what-it-means-for-you/articleshow/121979147.cms?utm.

This principle protects genuine owners when fraudsters attempt to misuse the registration machinery.

Also read-https://samvidhansesamadhaan.com/homebuyer-compensation-delayed-possession-supreme-court/

6. Real-World Case Illustrations

• Gurgaon (New York-based NRI case): A fraudster used a fake gift deed to transfer a plot worth ₹10 crore. When the NRI owner discovered it, litigation ensued, exposing how easily documents can be forged and accepted at registration offices (TOI Rehttps://timesofindia.indiatimes.com/city/gurgaon/new-york-based-mans-gurgaon-plot-sold-for-rs-10-crore-through-fake-gift-deed/articleshow/123591970.cms?utm_
• SDM Office Complicity: In several land acquisition and compensation cases, fake claimants have produced forged heirship certificates before SDMs to pocket compensation. Courts have directed stricter verification of identity in such proceedings.

These examples highlight the systemic vulnerabilities exploited by fake buyers.

7. Due Diligence for Sellers

As a matter of practical guidance, every seller should:

1. Verify the buyer’s Aadhaar, PAN, and bank KYC independently.
2. Demand bank transfers instead of cheques or cash.
3. Insert forfeiture clauses in the agreement to sell.
4. Engage a lawyer to draft documents, not rely on property agents alone.
5. Conduct a search at the Registrar’s office for encumbrance and past transactions.
6. Use escrow mechanisms for large sums.

8. Steps to Take if Caught in a Fake Buyer Trap

• Lodge a FIR for cheating, forgery, and impersonation.
• File a civil suit for cancellation and injunction.
• Write to the Sub-Registrar/SDM for cancellation of fraudulent registration.
• If property is high-value, seek a forensic examination of documents.
• Rely on Supreme Court precedents to establish that fraud vitiates every transaction.

9. Conclusion

Fake buyers have turned property transactions into a legal battlefield. However, Indian law, coupled with vigilant due diligence, provides sufficient safeguards. Sellers must remember the golden principle reaffirmed by the Supreme Court: registration alone does not create ownership. By ensuring professional drafting, financial transparency, and prompt legal action against fraudsters, property owners can secure their rights and avoid falling prey to this growing menace.

Also read-

https://samvidhansesamadhaan.com/unclaimed-money-in-dead-bank-accounts-how-to-get-it-back