Gurugram Prime Plot 'Sold' Through Fake GPA : Supreme Court Forms SIT To Probe Land Scam; Questions Role Of Sub-Registrar's Office

The Supreme Court, recently, directed the Commissioner of Police, Gurugram to constitute a Special Investigation Team (SIT) to investigate a land scam that involves officials at the office of land Registering Authorities and other accused persons allegedly duping an elderly NRI couple. The Apex Court categorically stated that the Commissioner of Police, Gurugram is personally responsible for monitoring the day to day investigation. The SIT will be headed by an officer not below the rank of DySP and will have two inspectors as its members.

While expanding the scope of inquiry, a Bench comprising Justice Surya Kant and Justice CT Ravikumar granted liberty to the SIT to subject the accused persons as well as the officers at the Sub-Registrar's office to custodial investigation. It further granted liberty to the SIT to seek modification of Trial Court/High Court order granting anticipatory bail to those involved in the present matter. The Court directed the SIT to conclude the investigation within two months’ time. It also directed the authorities of NCT of Delhi to cooperate in verification of allegedly forged General Power of Attorney that was registered at the office of the Sub Registrar, Kalkaji, New Delhi in 1996.

The Court was of the prima facie opinion that the submissions of the accused who had sold the concerned property, the buyers and the Sub-Registrar lacked conviction. It further stated that they seem to be acting in cohorts with the ulterior notice to dupe the original land-owners, an elderly NRI couple. It noted, “In such cases where the victims of a crime, on account of their old age and geographical distance, are unable to secure justice on their own, it falls upon Courts and the State to carry out their solemn duty to ward off injustice and restore the faith of one and all in the rule of law.”

Land scams a persistent issue in India

Making observations on land scams, the Court stated that these scams not only cause financial losses to individuals and investors but also disrupt development projects, erode public trust and hinder socio-economic progress. The Apex Court was of the view that in the present case if there is any involvement of the land mafia, the same should come to the forefront through an unimpaired investigation.

"Land scams in India have been a persistent issue, involving fraudulent practices and illegal activities related to land acquisition, ownership, and transactions. Scammers often create fake land titles, forge sale deeds, or manipulate land records to show false ownership or an encumbrance­free status. Organized criminal networks often plan and execute these intricate scams, exploiting vulnerable individuals and communities, and resorting to intimidation or threats to force them to vacate their properties. These land scams not only result in financial losses for individuals and investors but also disrupt development projects, erode public trust, and hinder socio­economic progress".

Background facts

The owners of a prime property situated in Gurugram alleged that their land has been mutated at the office of Sub-Registrar Kadipur, Gurugram, in the name of another person based on a forged and fabricated sale deed, which was executed on the basis of a forged General Power of Attorney (GPA) registered in the office of Sub-Registrar, Kalkaji, Delhi. They claimed that the accused in collusion with other officers at the Sub-Registrar's office had created the fraudulent documents. An FIR was registered at Badshahpur Police Station, Gurugram and investigation was initiated.

Subsequently, one of the accused applied for anticipatory bail before the Trial Court. The bail application was dismissed as the allegations against him were serious; the original GPA was yet to be recovered. He approached the Punjab And Haryana High Court seeking anticipatory bail, which was granted. The grant of pre-arrest bail was challenged before the Apex Court by the original complainants.

The Apex Court noted that the nature of the office, which involved forging documents, transferring ownership of land worth crores of rupees is grave. Therefore, it opined that in such cases caution should be exercised in granting pre-arrest bail. The Court observed that it is crucial to strike a balance between personal liberty and the interests of justice.

Court questions the role of Sub Registrar and his officials

Considering the facts of the case, it noted that the GPA was yet to be recovered; GPA is stated to be registered in Kalkaji even when the land is in Gurugram; no location of the original document is available; ownership of land in revenue records remained in the name of the was acquired by the Government and the original land owners received the compensation. The Court took note of the fact that at that point in time, the accused had neither objected to the original owners receiving the compensation nor asserted his title over the property. The accused have not been able to show payment of any consideration to the original owners. Moreover, it noted that the sale deed was executed without mentioning PAN Number or without deducting TDS.

The Court questioned the conduct of the Registering Authorities.

“We are equally intrigued at the behaviour of the Registering Authorities and their acceptance of the conveyance deed in the absence of these formalities being completed. The SubRegistrar and his officials were obligated to verify the ownership rights before registration of the sale deed.”

It added :

"We are, as mentioned, also skeptical, suspicious and incredulous about the verification process of the 1996 GPA carried out by the SubRegistrar, Kalkaji, New Delhi. Hence, the conduct of the officials of Sub-Registrar Office, Kalkaji, New Delhi is also required to be examined to take the investigation to its logical conclusion"

It was also alleged that the land was severely under-valued. The owners claim that the market value of the land is not less than INR 50 crores, whereas the consideration of the alleged sale deed is INR 6.60 crores. The Court was of the view that the allegation of under-valuation of the land also requires a deeper probe.

Case details

Pratibha Manchanda And Anr. v. State of Haryana And Anr.| 2023 LiveLaw SC 514   |Criminal Appeal No. 1793 of 2023| 7th July, 2023| Justice Surya Kant and Justice CT Ravikumar

Click here to read the judgment