1. Strictly speaking the all the steps taken after the property was mortgaged with the ending Bank is wrong anf illegal.

2. The sale of his mortgaged property by X to you without taking Bank's approval is illegal.

3. Since the sale of the property to you was illegal, your sale of the same property to Y is also illegal.

4. Now, when you paid off the outstanding of X to the Bank, did the Bank return you the original title deed of the property deposited by X with them to you?

5. By submitting the said Affidavit, what financial gain do you think X can attempt for? Since he has already sold his said mortgaged property to you, he cannot deny that sale.

6. Did Y issue the cheque for that earnest money in favour of you and you deposited the amount by issuing another cheque to the Bank or the said cheque towards the earnest money was drawn directly in favour of the Bank which you have deposited to them? If the said cheque was directly drawn to the Bank without any tripartite agreement executed by and between you, your seller and the Bank, then it was wrong to draw the said cheque in favour of the Bank and deposit it with them.

7. However, mentioning the cheque in the sale deed will be of legal advantage to you.

8. All my above comments have been made considering that both the sale deeds i.e. from X to you and from you to Y have been registered otherwise those deeds have no legal value.

9. You should pursue the complaint you have already filed with police.

File a case of cheating, fraud and common intention against them.

Since you appear to have sold the proeprty and got the money you may also consdier to ignore this.

For filing a false affidavit application u/s 340 crpc lies for necessary action.

You have already filed complaint of cheating and criminal breach of trust against X as flat was sold to you without clearing home loan

2) wait forc disposal of case

3) if in addition to sale price you had to repay home loan taken by X file suit to recover said amount from X

Do you have the sale agreement with Y and is there a mention about this what yo have stated in your query?

This documentary evidence of sale agreement with your buyer shall be a strong event of evidence for your pleadings

Gather the evidence and move legally against the bank.

1) file police complaint if signature of Y had been forged

2) you should oppose grant of reliefs by HC to X on the grounds that signature of Y is forged

3) rely upon police complaint filed regarding forgery

4) if Y states on affidavit that his signature is forged it woukd strengthen your case

1. First of all collect the evidence of his filing the fraudulently done affidavit faking the signature of Y,

2. If Y's signature has been faked, it is Y who shall have to seek legal recourses and not you.

3. Even if X submits the said false affidavit, what gain he achievs and how does it affect you?

4. Do not react with out getting the proper document to prove your point before the Court.

The forgery has to be proved by referring it to the forensic department or with a hand writing experts for his opinion.

It becomes the burden of the person to prove the illegality of it than the person who relies on it under the given situation.

1. It seems that Mr.X may have forged the signatures of Mr.Y on the affidavit. So if Mr.X has filed a forged affidavit in the court then he is liable to be prosecuted and punished for the offence of perjury and forgery. The criminal complaint u/s 200 CRPC in this regard can be filed in the court by you.

2. Mr.Y is also free to launch the criminal prosecution of Mr.X for forgery.