Issues in house construction with in a registered plot

We bought a 313 square yards plot in 2006 in Badangpet (outskirts of Hyderabad) & We took panchayat approval for the construction at that time but we did not construct the house over there. Currently Badangpet has been converted into Municipality. We came to know that after couple of years(after our purchase) there is some dispute over the entire layout in some court since it is ancestral property but we never got any official notice regarding these issues. We came to know that couple of brothers did not sign the initial sale deed in 1997 (5 among the 8 did not sign the initial sale document) when they were selling it to a Muslim lady. I was told that there was a reason for not signing the document as they had already shared the entire land among themselves but this is not in written. 2 parties have shared the 11 acre agricultural land between 2 parties i.e. 5 acres with water well & the other party took 6 acres (without water well) but this is not in written. The legal heirs took this as an advantage since there was nothing in-written and filed the case in 2004 to distribute the land evenly. 3 people who have signed the document are already expired. There is already some execution petition in place and the court had started distributing the land & it looks like 2 parts of 10 parts are already being given to some parties(PFA) & still the distribution is in progress. We even don’t know where our land lies in those 10 parts & verbally we were told that it lies somewhere in lot-5 or lot-6. We have recently inquired about our plot in the registration office and we were told that we can construct/sell the land & they don’t see any problem in our plot. I am little confused and have few questions 1. Does Court includes/excludes the sold out land(say our plot) in distribution among the legal heirs? 2. How do we the know current status? 3. What is the role of LRS in such cases? I did not apply for LRS but I came to know that certain plot owners applied for it and got the LRS documents with them. 4. Shall we go ahead with construction in the plot since registration office don’t see any problems in the plot? But certain families(legal heirs) have been threatening the plot owners to not to construct the houses in their plots. Kindly guide us.