Land having Stay order being sold

Hello Sir/Madam, I am planning to buy the land in Zahirabad town which comes under Medak District, it was a agricultural land and the owner has developed it as a venture and they have the NA permission. they have developed the venture and now they are selling the plots and I have given them the token advance. Later I came to know that there is a stay order in that land. if court has given the stay order means the owner should not be selling the plot to any one. but some how I am not sure how come the land are getting registered. I think they are bribing register offer and the register office is registering the land. i wanted to know whether that on that particular land has the stay order or not. kindly let us know if you required any details. you can reach me out at anytime. Thanks Naresh

Asked on September 8, 2016 in land.
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Dear Naresh,


As far as law is concerned, if a land is an agricultural land, it cannot be used for residential purposes. If at all this has to be done, permission has to be taken from the required authorities.


However, in this case, as you have mentioned, a suit is pending in the Court. Whatever may the reason be, there is some dispute over the property. Your question can be answered by the doctrine of lis pendens (S. 52, The Transfer of Property Act, 1882). This section essentially deals with a disputed property which has a suit currently pending in the Court. 


The law generally says that, if a property dispute is ongoing in the Court, no transaction should be done upon it. However there is no ban on its transfer. The section mentioned above clearly says that any transaction can be done relating to that property, but that can be changed by the final verdict of the case. Once a judgment has been passed, that has to be followed, even if it is detrimental to someone’s interest. So in this case, if you buy the plot of land now and the Court gives its verdict that such transactions are illegal, then you have to give up your claim over the property, although you have paid your deposit. So not only will you lose your title over the property, you will also lose your deposit, unless the promoter pays back the deposit voluntarily.


If you think that there are instances of bribing, you can report it to the police and make them investigate the matter.

Answered on September 11, 2016.
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