The arrest of Dhruv Dutt Sharma, founder and managing director of Gurugram’s 32nd Avenue Mall, has pulled back the curtain on what police describe as a large-scale planned real estate fraud that may have defrauded hundreds of investors.

Gurugram police arrested Sharma on Friday in connection with allegations that commercial units were sold multiple times, rental returns were promised but not paid and funds were diverted for luxury investments. Officials estimate the fraud could be worth Rs 500 crore or more. He was produced before a court and sent to six days of police custody when the Economic Offenses Wing (EOW) started tracing the money trail.

Who is Dhruv Dutt Sharma?

Sharma, 34, is an American-educated businessman and the man behind the European-style 32nd Avenue mixed-use development, known for its restaurants, cafes and retail outlets.

A graduate of Boston University, he previously founded GuestHouser, a vacation rental platform, and was listed on the Forbes 30 Under 30 Asia list in 2018.

Since 2015, he has overseen 32nd’s real estate ventures in Delhi NCR, Hyderabad and Goa. He is also described as a director of 32nd Milestone (aka 32nd Avenue) and a resident of DLF Camellias in Gurugram.

How did the founder of 32nd Avenue develop the scam?

Step 1: The plot: guaranteed profitability and long leases

According to the police, Sharma and his associates allegedly lured investors with guaranteed rentals of up to 30 years, along with buyback options and regular monthly income.

Buyers were persuaded to invest millions of dollars in commercial units in the Gurugram-based project after securing demarcation and possession.

In several cases, sales agreements were formalized and rents were initially paid, a factor that investigators say masked the alleged irregularities.

In a complaint filed in January by a representative of Tram Ventures Pvt Ltd, the complainant alleged that in 2021, the directors and shareholders of Apra Motels, later renamed 32 Milestone Vistas Pvt Ltd, offered to sell a 3,000 square feet commercial unit (Unit No. 24) on the first floor of the Milestone 32 complex. The deal was finalized at Rs 2.5 crore on September 21, 2021.

Although a sale agreement was executed, the deed of transfer of ownership was allegedly never registered, despite repeated follow-ups. A legal notice was issued in October 2023 but received no response.

Step 2: Sell the same unit multiple times

The turning point occurred during the internal controls of the reporting company, which allegedly discovered that between the years 2022 and 2023, the transfer deed of the same flat had been formalized in favor of 25 different people.

Police registered an FIR at the Civil Lines police station under sections related to cheating and criminal conspiracy. Investigators estimate that in some cases, a single floor of a commercial building was sold to more than 25 buyers.

Officials also suspect that multiple units were sold to multiple buyers, raising doubts about whether genuine possession could ever be handed over. When investors demanded possession or invoked buyback clauses, promoters allegedly claimed they could not comply, further fueling fears of systematic misrepresentation.

Step 3: Leases and alleged diversion of funds

According to the Gurugram police, Sharma allegedly admitted during preliminary interrogation that the land sold to the complainant was never transferred in his name and was instead sold to various buyers. The police further claimed that the same flat was rented out for 30 years to these buyers in the name of another company, Growth Hospitality Pvt Ltd.

Meanwhile, rent payments were allegedly stopped in August 2025. Police say statutory dues, including TDS, GST, PF and ESI, were not deposited despite repeated assurances.

During preliminary questioning, Sharma allegedly admitted that money raised from investors was diverted to luxury investments, including high-end villas along the Goa coast and property purchases in Neemrana, Rajasthan.

The scale: hundreds of investors, multiple FIRs

The case came to light about two months ago when investors approached the police commissioner’s public hearing, alleging large-scale cheating. Given the scale of the complaints, the matter was referred to the EOW.

Officials said that more than five FIRs have been filed so far, with statements of 40 to 50 complainants recorded. The actual number of individuals defrauded may range from 500 to 1,000, with each investor suspected to have been defrauded of between 1 and 2.5 million rupees.

Recently, the Gurugram police also registered FIRs against owners and officials linked to 32nd Avenue after investors protested over unpaid promised returns.