1. The MIDC has no right or jurisdiction to delcare that the agreemnt is canc elled.onluy a civilcourt cna do so.
2.However it appears that the owner has not returned the money of Mr Baba while seeking cancellation of the agreement.
3. Now if you wish to buy this property and wish to avoid all future disputes then only option is to get the advance money of mr Baba refunded to him and make him a Confirming Party in your sale deed.
4.in other words unless and until he gives consent of sale of this property by making himself added in your sale deed,do not proceed to buy this proeprty.