Authenticity of property title of the village panchayat allotted plot

Deepak (Querist) 23 March 2017 This query is : Resolved
Hello all,

I am planning to buy a residential property(alienated with district commissioner order in 1967) which was originally auctioned as a plot by village panchayat in 1978 and allotted to a person from the same village through a registered sale certificate for auctioned value in 1978. Sale certificate had a condition for not to sale the property for 15 years from the date of sale certificate.
But, the person sold the property to another person in 1979 through registered sale deed(during the period this person has got the Khata in his name) which was again sold to a different person in 1991 through a registered sale deed and which was finally sold to the present owner through a registered sale deed in 1992.
The present owner is having the peaceful possession of the property since 1992 with the Khata being transferred to her name and has built a house in the property after taking panchayath license and building approval plan in 1996.
Encumbrance Certificate also shows there are no pending encumbrances on the property(Although a home loan was taken in 1997 and was cleared in 2016).
Property is in a very good location and hence showing interest on the same.
A nationalised bank has already approved home loan for buying the property.

I dont see any issue except violating the 15 years restriction in the original sale certificate.

Is it safe to buy this property?

Thanks,
Deepak

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Adv. Yogen Kakade (Expert) 23 March 2017
Contact a local lawyer with all relevant documents.

Deepak (Querist) 23 March 2017
Thanks for the reply sir. I contacted local lawyer while applying for bank loan wherein the lawyer informed me that it is a common practice to sell land within the restricted time. Also, he mentioned that since the plot was allotted through registered sale certificate and property has no issues in the last 39 years, the property can be safely bought.

Ms.Usha Kapoor (Expert) 25 March 2017
Your Lawyer was right in opining that because it was allotted through registered sale certificate and property has no issues for the last 39 years it is safe to buy although it was sold long prior to its allotted time, say 15 years or restricted time which is a common practice in such sales with restricted time constraints.