New Delhi, Sep 2 (IANS): The dream of a house at a prominent location in Delhi is making people fall into the trap of fraudsters who are duping flat buyers by luring them with attractive schemes which only exist on shiny pamphlets and papers.

Of late, the fraudsters are using DDA's name to sound credible and lure investors.

These days many lucrative schemes are being floated in the market by different societies and builders in the name of the DDA's Land Pooling Policy, demanding registration fee and initial payment booking of property and flats. However, the twist in the story is that the DDA has not issued any licence or authorised any develop, builder, society or company to undertake the process of development in the sectors under the land pooling policy.

Further, the DDA shall be able to issue such provisional or final development licences only when the sector is qualified for development.

As per the notified policy, to make the sector eligible for development, a minimum of 70 per cent contiguous land of the developable area within the sector free of encumbrances is to be pooled.

"These fraudsters use aggressive marketing through mass messages, fictitious portals, and electronic advertisements on e-media, circulation of pamphlets etc with regard to the society projects and collect investments from the public at large in the form of bookings. Hefty commission is provided to the agents bringing the bookings of these housing projects," said O.P. Mishra, Joint CP, Economic Offences Wing.

In August, six accused persons were arrested by the Economic Offences Wing of Delhi Police in three cases involving cheating of home buyers under the garb of Land Pooling Policy of DDA. These included five office bearers of the societies and one property dealer.

The magnitude of the fraud could be gauged by the fact that an amount of approximately Rs 40 crore was collected in these cases from 350 investors in the name of providing housing under Land Pooling Policy of DDA in Dwarka.

So, what are the precautions? How can an investor verify if the schemes floated on colourful pamphlets are not as rosy as they appear?

"Take special precautions before investing in any such scheme and carefully read the specific guidelines and instructions issued from time to time by the DDA in this regard," Mishra said.

"If they do it once, they will do it again. Check the antecedents of the property dealers and builders before investing through them. Also use the genuine link of the DDA website pertaining to this policy," EOW has advised.

The EOW has also asked the aggrieved persons to approach the office of Joint Commissioner of Police, Economic Offences Wing, Mandir Marg Police Station Complex, Mandir Marg, New Delhi and file the complaint.