NRI duped in ₹10.7 crore Gurugram land fraud: How overseas Indians can safeguard their real estate assets back home

Experts advise NRIs to prevent property fraud by updating records, appointing a caretaker, and using a limited Special Power of Attorney

A shocking case of property fraud has once again highlighted the risks faced by non-resident Indians (NRIs) who own land in India. A New York-based NRI, Gaurav Narula, was allegedly duped by a Punjab resident and his associates, who fraudulently sold his 810 sq. m. plot in Sushant Lok 1, Gurugram, for ₹10.7 crore using a fake gift deed and posing as his fictitious ‘brother’ to transfer ownership.

NRI land fraud: How overseas Indians can protect their property investments back home. (Representational photo)(Pexels)

According to police, Manish Kumar and his associates fabricated a gift deed in June 2024, showing Narula had transferred the land to his ‘brother.’ The forged deed was reportedly registered at the Wazirabad sub-registrar’s office in Gurugram, enabling the accused to transfer and sell the property.

Narula, who has lived in the US since 1982, was quoted by the Times of India as saying that he only learned about the fraud when approached by acquaintances. He had inherited the property from his father in 1991.

What is a gift deed? A gift deed is a legal document used to transfer ownership of property, such as land, a house, or a flat, from one person to another without any exchange of money. For immovable property, it must be registered with the sub-registrar. Unlike a sale deed, a gift deed involves no monetary consideration and, once registered, it is generally irrevocable.

This case is not an isolated one. Property fraud targeting NRIs has been on the rise, with fraudsters exploiting absentee ownership, outdated records, and weak monitoring. Legal experts note that forged documents, impersonation, and misuse of power of attorney (PoA) are the most common tactics. They said NRIs often discover the fraud years later, once land prices have appreciated and litigation becomes messy.

Legal safeguards available to NRIs

To avoid falling victim to property fraud, legal experts urge NRIs to adopt proactive safeguards. They recommend keeping property records up to date by regularly updating and verifying ownership in land and municipal records. Since long absences often create room for misuse, appointing a trusted caretaker or a professional property manager to oversee the site is crucial. When a Power of Attorney is required, experts advise opting for a registered Special Power of Attorney with well-defined limits, rather than a broad General Power of Attorney.

Experts say the first line of protection for NRIs lies in using government-verified systems. “In Karnataka, for instance, certified family records are maintained in tahsildar offices with Aadhaar details of members,” said Akash Bantia, a Bengaluru-based advocate. “Once you file an affidavit, verification is done within a week.”

Linking land records with Aadhaar, PAN, and updated contact details reduces impersonation risks, while states now require OTP-based authentication for khata applications. “NRIs must keep an active Indian number to receive SMS alerts and OTPs for property-linked activities,” Bantia said.

Joint ownership is another safeguard, as it makes fraudulent transfers harder. However, experts note this can complicate matters when multiple heirs are involved.“Joint ownership can act as a safeguard since transactions would require the signatures of both owners. NRIs often appoint a trusted parent or relative as a local Power of Attorney holder to manage affairs, but such powers can sometimes be misused,” said Chandrachur Bhattacharyya, a Delhi-based advocate.

“Aadhaar-based authentication remains the most reliable option,” Bantia said. Cooperative housing societies also act as a layer of security. “If a flat is in a registered society, no transfer can take place without its endorsement and due diligence, including clearance certificates. State-specific cooperative laws provide an added safety net,” he pointed out.

Legal experts point out that if a flat is in a gated society like Dwarka, the Delhi Cooperative Act comes into play, requiring the society’s endorsement and due diligence before any transfer. Multiple documents, such as a no-dues certificate, are mandatory, making the cooperative housing system an added safeguard. Similar provisions exist under state-specific cooperative laws across India.

Beyond government checks, lawyers recommend that NRIs adopt practical strategies to protect assets. Appointing a registered Special Power of Attorney (PoA) to a trusted parent or relative helps manage property locally, though misuse is possible if not narrowly defined. “The onus also lies on registrars and sub-registrars, who must prevent registration of fabricated documents like those seen in this case. In cases of negligence, action can and should be taken against them,” Bhattacharyya said.

Technology and surveillance can add another layer of protection. Installing cameras and hiring local security ensures physical monitoring, while online land record portals in many states provide real-time alerts on any transaction.

Financing can also work as a safeguard. “If the property is bought through a bank loan, it remains hypothecated with the bank until repayment. No transaction is possible without a No Objection Certificate (NOC) from the lender, effectively preventing fraudulent sales during the loan tenure,” adds Bhattacharyya.

“When a property is purchased with a home loan, it remains linked to the bank, which means no other transaction can take place without a No-Objection Certificate (NOC) from the lender. Since home loans typically run for 15–30 years, this acts as a safeguard against fraudulent sales. If a property has to be sold during the loan tenure, the seller must first reach an arrangement with the bank,” he said.