A ₹35 Lakh Fraud in Design Execution: A Professional Learning on Undercutting, Collusion, and Cheating

This article is written in the interest of professional awareness for architects, interior designers, and execution agencies. The facts stated herein are based on written communication, recorded meetings, contractual documents, and statutory records. Legal recovery and regulatory recourse are currently underway.

In professional practice, disputes are not uncommon. Fraud, cheating, and collusion, however, are not “disputes”—they are systemic failures of ethics.

This blog documents how rat[LAB] Design FAB became the victim of what prima facie constitutes a ₹35 lakh financial fraud, enabled through undercutting within the design fraternity, misuse of intermediary power, and apparent collusion between a design consultant and the client.

We are naming Design Foundation because this is about accountability, not anonymity.

The Project and the Role of Design Foundation

For the Aurelius interior execution project in Gurugram, Design Foundation acted as:

• Design Consultant

• Commercial Intermediary

• Sole Payment Channel between client and execution agency

At all times:

• Our contractual relationship was with Design Foundation

• Payments were to be routed only through Design Foundation

• Financial assurances were issued by Design Foundation

This intermediary role placed Design Foundation in a fiduciary position—a position that, based on documented conduct, was misused.

Undercutting: Where the Fraud Pipeline Begins

At the contract finalisation stage, Design Foundation pushed aggressive undercutting, including:

• A last-minute discount of approximately ₹11 lakhs

• Rejection of our proposed payment milestones

• Imposition of their own payment structure, giving them unilateral financial control

Additionally, Design Foundation induced execution by:

• Promising two future projects (10,000 sq.ft and 5,000 sq.ft)

• Exchanging BOQs to reinforce these assurances

These inducements later proved to be false representations, a classic precursor to financial cheating.

Undercutting by fellow designers is not competition—it is the first step toward exploitation.

Completion, Celebration, and Then Sudden Allegations

One of the clearest indicators of fraud lies in timing.

• Execution was nearing completion

• Objective snags were addressed and documented

• Site confirmations were recorded

• Celebratory reels and social media content were being created and shared

At that stage:

• No dissatisfaction was recorded

• No quality issues were raised

• No payment objections were communicated

Only after execution was complete and payments became due, the narrative shifted.

Suddenly:

• Subjective quality concerns emerged

• Vague client dissatisfaction was cited

• Previously closed items were reopened without objective basis

This pattern—celebration first, allegations later—is not coincidence. It is a known tactic in payment frauds.

Objective Snags Closed. Subjective Control Imposed.

In execution, objective snags are measurable and documentable.

In this case:

• All objective snags were closed

• Confirmations were recorded

• No contemporaneous objections existed

What followed instead were subjective, non-quantifiable allegations, raised after completion, and used to justify withholding payments.

This conduct, viewed cumulatively, amounts to cheating.

The Core of the Fraud: ₹35 Lakhs and GST Withholding

As of today, approximately ₹35 lakhs remain unpaid.

A major component of this fraud is GST manipulation.

• Principal amounts were selectively released

• GST for multiple stages was deliberately withheld

• TDS compliance remains unclear

• Invoices cannot be raised despite completion

Withholding GST:

• Exposes the execution agency to statutory liability

• Blocks lawful invoicing

• Constitutes financial and tax-related cheating

This is not a commercial dispute.This is statutory non-compliance used as a pressure tactic.

False Promises and Inducement by Deception

Over nearly two months, Design Foundation issued multiple false assurances on payment release, citing specific dates and timelines.

Each assurance was dishonoured.

Every delay came with:

• A new explanation

• A new story

• No written accountability

Such conduct constitutes inducement by deception, a recognised element of financial fraud.

Communication Blackout: Absconding from Responsibility

After payments were withheld:

• Calls were not answered

• Messages were ignored

• Emails went unanswered

• No representative of rat[LAB] Design FAB could establish contact

This deliberate communication blackout is not neutral behaviour. It is absconding from responsibility, reinforcing fraudulent intent.

Collusion and Conflict of Interest

Based on conduct and records, it became evident that Design Foundation shared unusually close professional proximity with the client, including being offered operational presence within the client’s office ecosystem.

When a design consultant:

• Controls payments

• Maintains close operational proximity to the client

• Enables post-completion allegations

• Blocks communication with the execution agency

…it raises serious concerns of collusion.

This collusion is central to how the fraud unfolded.

Legal Recourse: No Compromise, Only Facts

We are pursuing legal recovery and statutory recourse:

• Strictly on documented facts

• Based on written and recorded communication

• Without compromise

• Without private settlement pressure

Fraud, cheating, and collusion cannot be resolved informally.

Why We Are Sharing This Publicly

This experience is being shared deliberately and responsibly.

Not to provoke.Not to sensationalise.Not to conduct a trial by social media.

But because financial fraud, cheating, and collusion—when left unspoken—repeat themselves across projects, firms, and generations.

This is an awareness note to the design and execution fraternity, based strictly on:

• Written communication

• Recorded discussions

• Contractual documentation

• Statutory and financial records

Legal and recovery proceedings are underway and will take their own course.Awareness, however, must precede damage.

Key Learnings for Execution Agencies

If you are an execution agency, contractor, or design-build firm, these are non-negotiable takeaways from our experience:

• If payments stop, work must stop — in writing.Never continue execution based on verbal assurances, goodwill, or pressure.

• GST must be released with every payment.Withholding GST is not a “commercial adjustment”—it is a statutory red flag and a known fraud tactic.

• Never accept overridden payment terms without safeguards.If an intermediary controls money, timelines, and communication, you are exposed.

• Record everything. Site meetings, verbal discussions, assurances, timelines—if it’s not recorded, it didn’t happen.

• Do not undercut yourself for future promises.Future projects, BOQs, and verbal pipelines mean nothing if current dues are not honoured.

• The moment communication stops, intent becomes clear.Delays happen. Silence does not.

Key Learnings for Designers & Design Consultants

As architects and designers ourselves, this section matters deeply to us.

Designers do not only design spaces — they shape professional ecosystems.

• Do not misuse your position as an intermediary.Controlling payments creates responsibility, not entitlement.

• Do not undercut execution partners for short-term client appeasement. It weakens trust, damages delivery, and erodes the profession.

• Never apply subjective dissatisfaction to block objective payments.If work is complete and snags are closed, payments must follow.

• Respect that execution agencies are not buffers — they are partners.Their cash flow sustains dozens of vendors, consultants, and workers.

• True professionalism is fairness to every stakeholder.Short-term gains achieved through pressure, withholding, or collusion eventually surface.

As designers, our responsibility is not only toward clients—but toward every stakeholder who builds the project with us.

The Human Cost of Payment Fraud

A ₹35 lakh payment fraud is not just a number on paper.

Behind it are:

• Fabricators

• Site workers

• Consultants

• Vendors

• Small teams and families

When payments are dishonestly withheld:

• Multiple livelihoods are disrupted

• Reactions become unpredictable

• Consequences ripple far beyond boardrooms and emails

No one controls how desperation manifests when hard-earned money is blocked.

This is why financial integrity is not optional.

A Final Moral Note

Fraud, cheating, and collusion may appear calculated—but consequences are never controllable.

Whether one believes in law, karma, or conscience — every action has an echo.

Money withheld is someone else’s labour. Someone else’s responsibility. Someone else’s survival.

Keep your conscience clear. Keep your profession clean. Because no project, no client, no short-term gain is worth destroying trust.

As we often say—quietly but firmly—

God is watching. And so is the profession.

Closing Note

We regret being part of this project.We do not regret sharing this learning.

If this prevents even one execution agency from being cheated,or one designer from misusing their position,then this disclosure has served its purpose.

Final Disclaimer

This article reflects documented professional experiences and ongoing legal proceedings. It is shared solely for industry awareness and does not constitute a judicial finding. All matters are subject to due legal process.