1. Cheque bounce cases has nothing to do with the property.
2. You must ensure that if he had any other personal loan on the basis of the photocopy of the property documents with private financiers, who for recovery might have filed a suit by attaching the property. This you need to confirm from your reliable source while verifying the vendor's character and antecedents.
3. Since the property is under mortgage loan with LIC, you have to get NOC from them before buying it or even making a payment towards advance for the sale consideration.
Without confirmation from LIC and also without the vendor producing the original documents, you cannot proceed with the registration of sale deed in your favor.
4. If at all there are chances that the vendor has availed loan from some private financiers, they may try to attach the property through money recovery suit, but you cannot find an entry to this effect in the encumbrance certificate.
5. What prevents you from taking a proper legal opinion about this property from an experienced lawyer in the local because you may land in trouble when you proceed on the basis of your own thinking that you know everything about this hence you dont need to spend on legal opinion by a lawyer.