POA holder acts on behalf of executors which in present case it was your father. POA holder olis bound to repay the received consideration to owner of property and she had not given the received consideration then she is liable to pay received consideration. Claim consideratio with interest. Neither you nor your father neither his property are/were liable to pay for illegal act of POA holder who had sold govt land in garb of POA while fact is that there was POA of your father in respect his own property and not in respect of govt land. POA had exceeded her authority and her act was illegal.
So called second marriage is illegal. Let her file case and then you can have DNA test of her children. You and your mother in particular can challenge paternity of children. Mere mentioning in birth certificate does not have any value.