Property dispute - fraudulent gift deed to family member after sale deed
Mr.KTS had received monies from my father which he could not return. Subsequently, KTS executed a registered Power of Attorney (POA) in favor of my uncle in June 2009. The POA acknowledges receipt of amount by KTS from my uncle at the time of execution. The POA does not state that it was executed as security for a loan or conditional arrangement.
Using the POA, my uncle executed a registered Sale Deed in favor of my father in Feb 2010.
After the sale, KTS requested permission to continue residing in the property and my father permitted the same. No lease agreement, rent arrangement, mortgage document, reconveyance agreement, or written repurchase agreement was executed.
In Sep 2010, after the sale deed had already been executed, KTS cancelled the POA and thereafter executed a registered Gift Deed in favor of his wife Geetha in respect of the same property without our knowledge.
A significant fact is that the 2009 POA executed by KTS contains updated property boundaries. However, the Sep 2010 Gift Deed uses older boundary from the mother document, despite neighboring ownership having changed by then. This suggests concealment.
For many years, patta, property tax and electricity records remained on KTS's side due to trust.
In 2024, we first became aware of Gift Deed and transferred patta to my father's name and also submitted complaint to RDO alleging that the Gift Deed was fraudulent.
All this while:
1. KTS has never challenged the February 2010 Sale Deed nor filed suit seeking cancellation of our Sale Deed.
2. There is no written document stating that the transaction was merely security for a loan.
3. The POA acknowledges receipt of consideration.
4. KTS has remained in physical possession since 2010.
My questions are:
1. How strong is my father's title based on the POA and Sale Deed?
2. If the Sale Deed is valid, what is the legal effect of the subsequent Gift Deed?
3. How strong would a defence be that the transaction was only security for a loan despite the contents of the registered POA and Sale Deed?
4. Does KTS have a credible adverse possession defence?
5. Does the long delay create a serious limitation issue?
6. Does the boundary discrepancy strengthen an allegation of fraudulent intent?
7. What is the most appropriate civil remedy and litigation strategy?
8. Do the facts disclose a cognizable criminal offence justifying a police complaint/FIR?
9. Should a police complaint and civil suit be pursued simultaneously?
10. Should I first pursue a police complaint to ascertain KTS's stand before filing the civil suit?
11. What is the limitation risk in filing a declaration suit and recovery of possession suit in 2026 based on these facts, and from what point would limitation likely be computed?
12. Would transferring property from father to mother before litigation create any legal advantage or disadvantage?
I would appreciate a candid assessment of the strengths, weaknesses, risks, and recommended sequence of action
Asked 7 hours ago in Property Law
Religion: Hindu