Faking property

People losing money in fake property schemes is nothing new in our country. The developers behind fake schemes pay off government employees and hire a bunch of property dealers to help them sell fake property files to investors. Using the business model of the stock exchange where share prices fluctuate, the rate of plot files also change daily depending on the amount of commission. Thus, money is exchanged over a piece of paper several times. The developer takes away all initial down and monthly regular payments for his/her own use, which is normally invested in other business ventures or deposited in long-term investments in other countries.

The genius part of the whole scheme is how it ends. When property dealers and developers feel that too many people have started questioning the genuineness of the scheme, the developer quickly announces a draw for allotment of plots. In the meantime, property dealers buy back the majority of plot files from people and sell them back to property developers. This way 20-30 percent of files are bought back through this fake draw, and this process is repeated every few years until only a few plot files are left for which the property developer procures a small piece of land and allot it to the remaining file holders. The authorities concerned are requested to rein in this shoddy business.

Engr Shahryar Khan Baseer

Peshawar