If you are stuck in such a situation, here is what to do.
Rajesh purchased a plot of land in Chennai and successfully registered it in his name. During his property search, he encountered a broker named Mr. Sharma who showed him the land but refused to share the owner’s contact details or arrange any direct meeting. However, Rajesh managed to find the owner’s contact number independently, which was mentioned in the property layout advertisement. The owner, who was also acting as a broker, dealt directly with Rajesh.
On the day of registration at the Sub-Registrar’s office, Mr. Sharma appeared and demanded commission for the land transaction. When Rajesh explained that Mr. Sharma had neither shared the owner’s contact nor facilitated any meeting, Mr. Sharma became aggressive. The owner also confirmed that no formal introduction or meeting was arranged by Mr. Sharma.
Despite this, Mr. Sharma continues to harass Rajesh with phone calls, initially demanding 0.5% commission and later reducing it to Rs. 10,000. He is making threats about filing legal cases and has been calling Rajesh a “fraud” even in the Sub-Registrar’s office premises. Notably, Mr. Sharma is not making any similar demands from the property owner.
Advice in such cases
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
Document all communications and maintain a detailed record of events. Do not engage in any verbal altercations or make any admissions. Avoid making any payments under pressure or threat.
File a complaint with local police if threats and harassment continue. The behavior described may constitute criminal intimidation and extortion under applicable laws.
Gather evidence of the independent property discovery and direct dealing with the owner. Obtain written statements from the owner confirming no brokerage arrangement existed.
Applicable Sections of Law
Section 308 of Bharatiya Nyaya Sanhita (BNS) – Extortion: Demanding money through threats or coercion
Section 351 of BNS – Criminal Intimidation: Making threats to cause alarm or force someone to do something they are not legally bound to do
Section 356 of BNS – Defamation: Public accusations of fraud without basis constitute defamatory statements
Section 3 of Bharatiya Nagarik Suraksha Sanhita (BNSS) – Right to file FIR for cognizable offenses
If you are the complainant
Maintain complete documentation of the property transaction including registration documents, payment receipts, and communication records with the actual owner.
Record all threatening calls or messages if possible, and maintain a log of harassment incidents with dates and times.
File an FIR under appropriate sections if criminal intimidation or extortion attempts continue. Approach the jurisdictional police station with all relevant documents.
Consider sending a legal notice to the broker demanding cessation of harassment and threats through your advocate.
If you are the victim
Do not succumb to pressure or make any payments without legal obligation. Document every instance of harassment or threat made by the broker.
Inform the Sub-Registrar’s office about the harassment occurring on their premises and request their support in preventing such incidents.
Block the broker’s contact if harassment continues through phone calls, but maintain records of attempted communications.
Seek support from family members or witnesses when dealing with the situation, and avoid meeting the broker alone.
How the police behave in such cases
Police typically treat property-related disputes as civil matters initially and may suggest mediation or civil remedies.
However, when clear elements of criminal intimidation or extortion are present, they are obligated to register an FIR and investigate.
Documentation and evidence play a crucial role in police response – strong evidence of threats or harassment will prompt better police action.
Police may attempt to mediate initially, but persistent harassment with threats usually leads to formal complaint registration.
FAQs people normally have
Can a broker claim commission without facilitating the deal? No, commission is earned only when the broker actually facilitates the transaction or introduces parties leading to a successful deal.
Is it legal for someone to threaten legal action for commission? While threatening legitimate legal action is not illegal, using threats to extort money or making false accusations of fraud can constitute criminal intimidation.
Should I pay to avoid harassment? Paying under coercion only encourages further harassment and may not end the problem. Legal remedies are more effective.
What evidence is required?
Property registration documents showing direct transaction between buyer and owner without broker involvement.
Communication records with the property owner confirming independent contact and no brokerage arrangement.
Audio or video recordings of threatening conversations, if legally obtained, and witness statements from people present during harassment incidents.
Written documentation of all harassment incidents including dates, times, and nature of threats or demands made by the broker.
How long will the investigation take?
Investigation timeline depends on the complexity of evidence and cooperation of parties involved, typically ranging from 2-6 months for straightforward cases.
Criminal intimidation and extortion cases usually receive priority treatment if proper evidence is presented and threats are ongoing.
Civil aspects regarding commission disputes may take longer to resolve and might require separate civil litigation if the broker pursues legal action.
Prompt filing of complaints and strong documentation can significantly reduce investigation timelines and lead to quicker resolution.
Advocate Sudhir Rao, Supreme Court of India