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₹5 Crore to ₹10 Crore Property Fraud Probe Widens in Varanasi

Investigators examine multiple complaints alleging advance payments were collected for plots and houses without property registration or refund.
July 17, 2026 by
₹5 Crore to ₹10 Crore Property Fraud Probe Widens in Varanasi
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A suspected organised real estate fraud is under investigation in Varanasi, Uttar Pradesh, after multiple complaints alleged that buyers were induced to pay substantial advances for residential plots and houses that were never transferred in their names.

Police believe the alleged fraud may ultimately involve ₹5 crore to ₹10 crore, while preliminary findings suggest that several victims—including police personnel and court employees—may have suffered significant financial losses over the past two years.

Investigation Began With Two Police Complaints

The probe gained momentum after two complaints were registered within 48 hours at Lalpur-Pandeypur Police Station.

According to investigators:

  • Two complainants alleged losses totalling ₹20.50 lakh.
  • Preliminary enquiries indicate that more than 10 police personnel may have collectively lost over ₹1 crore.
  • Authorities believe additional victims may yet come forward.

The estimated overall financial exposure is currently under investigation.

Cases Registered Against Several Individuals

Police have registered cases against:

  • Gaurav Gupta
  • Deepak Gupta
  • Kasturi Devi
  • Other associated individuals

The accused allegedly represented that they would provide:

  • Residential plots
  • Houses
  • Property registrations at attractive prices

According to the complaints, substantial advance payments were collected, but ownership was allegedly never transferred and refunds were not issued.

The allegations remain under investigation.

Constable Alleges ₹13 Lakh Loss

According to an FIR, Constable Vishal Kumar, posted at the Tourist Police Station, alleged that:

  • He paid ₹13 lakh during 2024 for a residential house.
  • The property was never registered in his name.
  • Despite repeated assurances, possession and registration did not take place.

The complainant further alleged that refund requests were unsuccessful and that he was threatened after demanding his money back.

These allegations are part of the ongoing investigation.

Another Police Personnel Reports ₹7.50 Lakh Loss

In a separate complaint, Constable Bhavan Kumar, posted at Cantt Police Station, alleged that:

  • He paid ₹7.50 lakh for the purchase of land.
  • The promised property transaction was never completed.

Police state that these two complaints prompted investigators to expand the scope of the enquiry.

Additional Victims Surface

Authorities have identified similar complaints registered at Kotwali Police Station.

According to police:

  • Ward boy Sushil Kumar and his brother alleged losses of ₹16.50 lakh.
  • Urmila Devi alleged that she was defrauded of ₹15 lakh in connection with a land transaction.

Investigators are verifying these allegations along with other complaints.

Probe Extends Beyond Police Personnel

Police believe the alleged scheme was not limited to law enforcement personnel.

According to investigators, possible victims also include:

  • Court clerks
  • Judicial staff
  • Other government employees
  • Private individuals

Officials also stated that Constable Vinay Yadav allegedly lost approximately ₹10 lakh in a similar transaction.

Authorities expect the number of complainants to increase as the investigation progresses.

Alleged Modus Operandi Under Examination

According to preliminary findings, investigators believe the accused may have operated by:

  • Advertising plots and houses
  • Offering attractive prices
  • Collecting advance payments
  • Repeatedly delaying registration
  • Providing repeated assurances
  • Ultimately failing to execute property transfers or refunds

Police are examining whether this pattern occurred across multiple transactions.

Financial Investigation Underway

Investigators are currently analysing:

  • Bank account transactions
  • Property ownership records
  • Financial documents
  • Payment trails
  • Transaction histories
  • Related agreements

The objective is to determine:

  • Total money collected
  • Number of affected buyers
  • Flow of funds
  • Possible financial irregularities
  • Individual roles of the accused

Police Appeal for Additional Complaints

Authorities have urged anyone who believes they may have been affected to approach investigators.

Police believe that further complaints could:

  • Expand the estimated financial loss.
  • Identify additional victims.
  • Reveal a wider pattern of alleged fraud.

The investigation remains ongoing.

Shunyatax Global Insight

Shunyatax Global says that property buyers should never rely solely on verbal assurances or promotional offers before making advance payments. Independent verification of land ownership, title records, approvals, encumbrances, seller credentials and registration status is essential. All payments should be routed through traceable banking channels with properly executed agreements to minimise legal and financial risks in real estate transactions.

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