• Can I start construction on a genuine land plot sold by a dealer who was found involved in land scam

I purchased a plot in 2008 from a builder, who later turned out to be a very big fraudster. The customers were fooled in different ways - 

1. Same plot was sold to multiple customers
2. Mutation papers were not given to most of them (naturally because of point no 1)
3. Mutation was done for a different plot ( let's call it site 2, which is 2 km away from the proposed site 1 )

I fall in category 3, as my father was very aware of land process, he followed up so well that, they were kind of forced to complete the mutation, but then it was for the site 2, not site 1 (which my father learnt only later ). As the scam got highlighted, different agencies started investigations, and as a result they attached multiple assets of the builder, and any new constructions was not allowed on the main site 1.

I want to know , if I am allowed to start construction on site 2, given that the mutation is genuine, and I can see my name in online land records. Ideally, I should be waiting for the judicial process to complete, and then I can expect to get a fair compensation from the recoveries done from the builder. However I want to take possession of whatever I have been given , and then I can initiate a legal process for the fraud they did.
Asked 2 years ago in Property Law
Religion: Hindu

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6 Answers

If your father had purchased site 1 but mutation done was for site 2 then your father does not have clear and marketable title to plot 

 

2) don’t carry on any construction on site 

 

3) wait for judicial process to be completed 

Ajay Sethi
Advocate, Mumbai
99859 Answers
8148 Consultations

If plot -1 was sold to you, but plot -2 was mutated in your name, then it is to be seen as to whether the sale deed was duly executed in respect of plot-2 or not. If the sale deed and mutation both are done in respect of plot - 2 then you are owner but if there same plot- 2 are sold to various people, then your ownership is not absolute and you cannot be termed as absolute owner hence site plan, sanctions and permission etc would not be passed and would not be granted. without plans and permissions no construction could be carried. Secondly you cannot enjoy both means that if you accept the ownership and take possession you cannot raise issue of fraud and if you raise the issue of fraud then you are not entitled to ownership and possession. In case of fraud the question of compensation cannot arise. Compensation arise only in case of civil wrong. 

Siddharth Srivastava
Advocate, Delhi
1551 Answers

Yes you can do the aforesaid there is no issue unless there is any stay order by court

Prashant Nayak
Advocate, Mumbai
34574 Answers
249 Consultations

You can take possession of the property you have purchased and on the basis of mutation records,  you first get your construction plan approved by the local civic body. 

You will come to know about the prevailing restrictions,  if any. 

If the approval is sanctioned then you can confirm that there's no pending litigation in your property. 

T Kalaiselvan
Advocate, Vellore
90061 Answers
2499 Consultations

What are the original documents handed over to you by builder ?

Mutation can be done on the basis of forged sale deed also, so don`t be so confident about your clear title on the basis of mutation.

You must be having possession of plot. Is your plot sold to other people as well ? 

Yogendra Singh Rajawat
Advocate, Jaipur
23083 Answers
31 Consultations

- If that plot is registered in your fathers name, then legally he is the owner of the plot , and can start construction over the same. 

- Further, if he is the first purchaser of the property , then he can file a declaration suit before the court for declaring the other sale deed as null and void. 

- Further if the site 1 was registered in your fathers name , then you cannot start construction on site 1 on the ground of mutation . 

- Hence, you should wait for the outcome of the court. 

Mohammed Shahzad
Advocate, Delhi
15821 Answers
242 Consultations

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