1: Does the daughter’s case about cancellation of sale deed still stay in this case?
If your vendor was having clear and marketable title to the property sold to you by executing a registered sale deed, then neither the daughter nor anyone can claim any share in the proeprty in any manner.
2: what are the possible solutions for such cases?
You have to contest properly with the support of the documentary evidences supporting your case.
3: the daughter of the owner is demanding a lot of money to settle down matter, which I cannot give, how should i go about it?
Dont give her any money, let she go to the court and waste her time, money and energy, she will not be able to succeed.
4: Does she have any chances of winning the case, if i decide to fight it?
You have to discuss with your advocate on this.
5: what are my chances of not losing property and the money I have invested in the land so far ?
Please help, the situation is giving me lot of tension
If what you have stated are taken to granted as true and facts, then you will not lose the case until and unless you are not following up the case properly or if your advocate is lacking knowledge in such civil cases or tilting sides.
You have to be vigilant in such situations, because this appears to be a fraud played by your vendor in collusion with her daughter to grab money for her greedy needs.