Transfer of ownership on basis of Index II

Dear Experts, We have a land which was purchased by our grandfather, we have the online copy of sathe karar(agreement for sale done in Oct-1989 , not original) and Index 2, where our name is there. Now on the 7/12 extract, still on the name of the first owner, but now even their name is boxed and shown as Maharashtra Government, Due to some reasons final sale deed was never done,(in the agreement for sale it is mentioned it will be done in 1 year, but it also mentions about) We have built a house on roughly 40 % of land and have been paying municipality taxes since more than 25 years. and it is on our name, We also have the valid permission taken from municipal corporation applied to build the house. We are living there for more than 25 years. Even the land tax & NA tax has been paid by us for all these years. We have some receipt and they are on our name. I have 3 Questions: (1) Is there a way we can claim complete ownership of land, if so, whome will the court favour if there is a case filed? As whenever we try to sell the land, the first owner also asks for his share, which is way more than a lethal value, which makes the deal worthless. (2) Can the second owner get his name replaced in 7/12 by submitting Index II document to talathi without consent of the first owner? (3) As now we see that the 7/12 has the name of the government, can we request them to transfer to our name?