As the real estate market evolves, a troubling trend has emerged, specifically targeting middle-income families eager to invest in their dream homes. Following a surge of complaints regarding pre-launch sales, new scams, including enticing buyback offers and invitations for expressions of interest (EOI), have infiltrated the market. These deceptive schemes are raising alarm bells among regulators and potential homebuyers alike.

The Dark Side of Real Estate Investments

In recent months, numerous reports have highlighted fraudulent activities where unsuspecting buyers are lured into investing in projects that exist only on paper. Regulatory bodies have clearly stated that soliciting funds through buyback schemes and EOIs without proper registration is illegal. Despite these warnings, many individuals, especially those from middle-income backgrounds, find themselves drawn into these traps.

Particularly in areas like Kokapet, funds are being collected by unscrupulous channel partners who operate outside the legal framework. These entities exploit the eagerness of buyers, promising lucrative returns on investments that often lead nowhere.

Social Media: A Hotbed for Deception

A thorough verification process has uncovered a plethora of advertisements across social media platforms promoting buyback offers and EOIs. Victims of these scams report a strikingly similar pattern: scammers use polished videos and 3D models—often unrelated to the actual projects—to mislead potential investors.

One victim recounted a harrowing experience, stating that they were shown a 3D model of a high-rise building project and paid Rs 1.16 lakh, being promised a flat in a venture located in Kokapet, where a 30-storey building was supposed to be constructed. The sense of urgency created by the scammers left many feeling they had to act immediately to avoid missing out on extraordinary opportunities.

High Returns, High Risks

Another alarming case involved a woman who responded to a social media advertisement promising extraordinary returns: “Invest Rs 50 lakh and get Rs 90 lakh.” Many victims, fearing damage to their professional reputations, have chosen to remain anonymous rather than report the scams. Concerns about potential harm to their careers discourage them from approaching law enforcement.

While some have attempted to seek assistance from the Telangana Real Estate Regulatory Authority (TGRERA), they were met with disappointment. Many of the projects they were duped into investing in were not registered with RERA, leaving victims without recourse.

The Need for Awareness and Regulation

The proliferation of scams in the real estate sector underscores an urgent need for increased awareness and robust regulatory frameworks. Potential buyers are urged to conduct thorough research and verify the legitimacy of any investment opportunity before parting with their hard-earned money. Projects with names reflecting popular locales, such as Nanakramguda commercial space and Kokapet residential apartments, must be approached with caution, as they may not always be what they seem.

As the landscape of real estate continues to change, vigilance is key. The stories of those affected serve as a stark reminder that, in the pursuit of homeownership, caution is paramount. Regulators must also act decisively to clamp down on these fraudulent schemes to protect consumers and restore confidence in the real estate market.