Purchase of resale flat

Sir I have given an token advance for the purchase of resale flat of 825 sqft approx in Howrah West bengal on 18 jan 2015 and taken the papers of flat for search. On 21st jan 2015 i came to know about a notice from west bengal govt issued on 15 jan 2015 from the land department for the land in which this building is located was originally given to an jute mill which was closed in 1985 approx and after that this land is not being transferred from commercial land to residential land. As per the govt letter the property in this land become non transferable in future and govt has already received ruling in his favor from high court in the petition filed on 2012. Now after receiving this letter i asked my seller to refund my advance money since during the search it founds that the land title is not clear for this appratment and no sale or purchase aggrement is being made between us till date. But the seller refuses to return my money on the ground that the papers of his flat is clear and he has nothing to do with letter from govt land dept. Now i want to know that in this situation it is right to invest in a property which is non transfarable in future. And how can i get back my money since i am not interested in this deal at this point of time. Expecting your earliest reply in this matter Thanking you Jigar s vasha