Builder Accused of Using Domestic Worker's Name in Billion-Rupee Property Scheme
A Bareilly-based builder stands accused of orchestrating a sophisticated property scheme worth billions of rupees, allegedly using his domestic worker's name to conceal ownership of land assets across multiple districts in Uttar Pradesh and Uttarakhand. The allegations, raised by the worker's family, have prompted investigations by tax authorities into suspected benami holdings that include residential colonies, hotels, and agricultural land.
Charanpal Singh Sobti, a prominent local builder, allegedly purchased extensive property in the name of Chatrapal Singh, who has worked for Sobti's family since 1990. The properties include two housing colonies currently under development near the Kashipur–Rudrapur National Highway, along with land parcels in Rudrapur where multi-storey hotels have already been constructed.
Background and Context
The case highlights the persistent challenge of benami transactions in India's real estate sector, where properties are purchased in one person's name but paid for by another to conceal true ownership. The Prohibition of Benami Property Transactions Act, amended in 2016, aims to curb such practices through stringent penalties and confiscation provisions. However, enforcement remains uneven across states, with investigations often requiring substantial resources and inter-agency coordination.
Key Figures and Entities
According to family complaints, Charanpal Singh Sobti allegedly coerced his domestic worker Chatrapal Singh into signing property documents and eventually a will transferring assets to Sobti. Manisha Singh, Chatrapal's wife, claims her husband was used as a proxy owner while crores of rupees flowed through joint bank accounts opened in their names. Surjit Singh, identified as handling plot sales at the developing colonies, has reportedly been granted power of attorney by Sobti. The Income Tax Department has launched an initial inquiry into properties registered in Dhohra and Haroonagla areas, with investigators examining records across multiple districts.
Legal and Financial Mechanisms
The alleged scheme exploited common vulnerabilities in property registration systems, where proper verification of beneficial ownership remains challenging. Family members claim Sobti systematically acquired agricultural land from farmers near Dibdiba village, registering it in Chatrapal's name before obtaining development permissions. Financial transactions reportedly moved through joint bank accounts, creating layers of documentation that obscured the true source of funds. The alleged will signed under pressure represents a concerning dimension of the alleged abuse of domestic workers' vulnerability.
International Implications and Policy Response
While this case operates within India's borders, it reflects global concerns about beneficial ownership transparency in real estate transactions. International bodies like the Financial Action Task Force have repeatedly emphasized the importance of robust property registries to prevent money laundering through real estate. The investigation coincides with broader Indian efforts to digitize land records and implement beneficial ownership registries for companies, though similar requirements for property owners remain limited. The outcome may influence how authorities approach similar benami property cases and potentially strengthen oversight mechanisms in the real estate sector.
Sources
This report draws on family complaints filed with local authorities, preliminary findings from Income Tax Department investigations, and property registry records from Bareilly, Rampur, and Rudrapur districts. Information was also gathered from local residents familiar with the property developments and banking records referenced in the family's allegations. Investigators continue to examine colony development documents, hotel project approvals, and financial transactions as the inquiry proceeds.
