• Fraud in land sale by the seller

We entered into an agreement for purchasing land near Meerut in UP. Later on, when registry date was near we came to know that there were unpaid  loans from banks against the land sold to us (as detailed  in registered agreement), and the location of land mentioned in agreement was different from the land shown to us. what remedy is possible in this case. 
( Approximately 25% of the payment has been made to the seller at the time of agreement .)
( Agreement was registered at Tehsil office.)
Asked 1 year ago in Property Law from Delhi, Delhi
Religion: Hindu
1) it is necessary to peruse agreement signed by you 

2) there must be s clause that seller shall offer inspection of all original documents pertaining to title and if title is not clear and marketable then agreement would be cancelled and advance paid refunded 

3) issue notice to seller for cancellation of agreement and seek refund of advance payment paid 
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
5.0 on 5.0
1. You should have checked with the location of the land and also the schedule mentioned in the Agreement,

2. Was the land mortgaged with the Bank by depositing the original sale deed?

3. File a criminal case against the seller for cheating and defrauding you,

4. After that file a complaint case before the local District Consumer Dispute Redressal forum alleging deficiency in service and unfair business practice claiming refund of the amount paid by you with interest, damage and cost.
Krishna Kishore Ganguly
Advocate, Kolkata
12077 Answers
228 Consultations
5.0 on 5.0
You may first issue a legal notice to the vendor cancelling the sale agreement which is defective due to the reasons observed.  If the property is under mortgage loan with bank, the vendor may not ave marketable title to sell the same.  Moreover if the property situate is not matching to the schedule of property mentioned in the sale agreement, it is nothing but cheating or fraud making the contract or agreement itself void. You may allow a stipulated time for him to return the sale advance amount with nominal interest, failing which you may initiate legal action by lodging a criminal complaint with the local police for the offencesof cheating and fraud as well as a civil suit for recovery of amount paid as advance to the sale consideration. 
T Kalaiselvan
Advocate, Vellore
13948 Answers
127 Consultations
5.0 on 5.0
Do not proceed to purchase, send a legal notice to the seller to cancel the agreement and claim your advance money with interest. If the seller would not comply as per notice then file a case in District Consumer Forum for return of your money.

You can also file a Criminal Case against the seller for cheating and suppress the facts u/sec 420,406 and 120B IPC.
Minansu Bhadra
Advocate, Kolkata
266 Answers
23 Consultations
4.8 on 5.0
1. Since it is an agricultural land without any construction thereupon, no case can be filed before the Consumer Court,

2. Agricultural Land can not be mortgaged for taking loan and if mortgaged, no SARFAESI action can be initiated to take possession of the said Agricultural Land,

3. In the given circumstances file criminal case and also Recovery Suit against the seller.
Krishna Kishore Ganguly
Advocate, Kolkata
12077 Answers
228 Consultations
5.0 on 5.0
1) you are bound to give notice at the address mentioned in the agreement for services of notice 

2) if returned with endorsement refuses it is proper service 

3) you will have to move court for refund of the amount paid as advance if seller refuses to refund advance on cancellation of agreement 
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
5.0 on 5.0
1) Land is agricultural land. The document referred by us at Tehsil was the "Farad"", issued by tehsil on the date of agreement .In farad names of the seller(s) were given ; this being a family property passed on to son(s) from father. The 'farad does not contain any mention of loans, however we have personally checked with banks and found that loans have been taken ( mainly kisan credit cards and farm equipment loans etc.). As revenue record (copies) issued from the tehsil is the only document in this case, banks provide these loans by creating mortgage on basis on "farad" only, by pasting revenue stamps on it.
In the given situation, this may not be a serious problem regarding title, however the mortgagor is liable to repay the loan amount even after selling the landed property, an indemnity bond can be obtained from the vendor to this effect. 



2) We had checked the location before entering into agreement. In the registered agreement the seller given only partial information ,i.e. he mentioned one of the land boundaries where he had shown us the land.But at "shown"location only approx. 20% of the land is available, rest is almost 5-6 km from that place, which was never under discussion..
If the total extent of the property shown to you do not come under the agreed situation then there is an intention of fraud to suppress the information material to the said purchase, therefore it can be said as defective.


3) This also seems to be a case of complicity of lower level revenue department people who cooperated with seller in concealing the loan related information from being recorded  in department documents ( farad etc.)
If you are suspecting mischiefs involving the people in power it would be better to avoid proceeding ahead to avoid litigation in future. 


4) I had sent a legal notice at address given in agreement and also on physical address inspected by us, notices were returned , NOT received.
Secure them as evidence and file a suit based on the said evidences and try to get an exparte order favoring you to execute the issue.
T Kalaiselvan
Advocate, Vellore
13948 Answers
127 Consultations
5.0 on 5.0
1. You can file a criminal case for cheating and breach of trust against the seller as he misrepresented the identify of the property to induce you to pay the earnest money.

2. Apart from a criminal case, you can also file a lawsuit for recovery of money against the seller to recover the earnest money paid to him along with compensation for the misrepresentation done by him. 

3. The criminal case can be filed with his last known address.
Ashish Davessar
Advocate, Jaipur
18061 Answers
447 Consultations
5.0 on 5.0

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