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v m   24 July 2025

Sale deed buyer is innocent??

Seeking Legal Guidance: Forgery & Subsequent Buyer Registry Issue

We seek legal opinion in a property fraud case. Our valid registry (Sale Deed No. 7932) was withdrawn using a forged signature, confirmed by FSL. On the same date (30.06.2023), another sale deed (No. 7931) was registered in favor of subsequent buyers using ₹3 lakh stamp paper—despite our agreement still being valid and DORIS status showing dispute. No sale agreement existed between seller and new buyers. They paid ₹55 lakh and took possession despite our objections and no NOC from us. Sub-Registrar concealed the forged withdrawal for 15 months. Our lawyer says buyers are innocent.

We seek advice:

1. Can subsequent buyers still be held liable in such fraud?

2. Any court rulings where buyers were penalized in similar cases?

3. How to fix liability of Sub-Registrar and buyers?

Please help with suggestions or precedents.



 11 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     24 July 2025

Can Subsequent Buyers Be Held Liable in Such Fraud? Yes, subsequent buyers can be held liable if they are not bona fide purchasers or if they failed to exercise due diligence. 

Doctrine of Bona Fide Purchaser: This protects only those buyers who: Purchased in good faith Paid valuable consideration Had no notice of prior claims or disputes If the DORIS system showed a dispute and your objections were known, the buyers cannot claim innocence under this doctrine. 

Doctrine of Lis Pendens (Section 52, Transfer of Property Act): Any transfer during the pendency of a dispute is subject to the outcome of that dispute. Buyers are bound by the result of your claim. 2️⃣ Court Rulings Where Buyers Were Penalized Several precedents show courts holding subsequent buyers accountable: 🧾 Case ⚖️ Outcome Bhupendra Singh v. Shushila Sharma (Uttarakhand HC) Buyer compelled to execute sale deed in favor of original buyer due to lack of bona fide status Rakesh Sharma v. Bhushan Lal (Himachal Pradesh HC) Buyer joined as co-defendant; sale deed directed in favor of original buyer Kanji Ravaria (2024 SCC OnLine SC 1756) SC clarified that bona fide protection applies only if seller had valid title Madras HC ruling (Muthammal v. S. Thangam) Bona fide buyer not liable under IPC Section 420 if unaware of fraud These cases show that buyers who ignore disputes or fail to verify title can face legal consequences, including reversal of sale or denial of protection. 3️⃣ Fixing Liability of Sub-Registrar and Buyers 

 Sub-Registrar Liability Under Sections 82 & 83 of the Registration Act, Sub-Registrars can be prosecuted for knowingly registering forged or fraudulent documents. If concealment was intentional, you may: File a complaint with the Inspector General of Registration Seek disciplinary action or criminal prosecution Request cancellation of the fraudulent deed via civil court

 Buyer Liability If buyers knew of the dispute or failed to verify title: You can join them as defendants in a suit for cancellation or specific performance File a complaint under IPC Sections 415, 420, 120B for cheating and conspiracy

Suggested Next Steps File a civil suit for cancellation of fraudulent sale deed and restoration of your title Consider a criminal complaint against the seller, Sub-Registrar, and buyers (if evidence supports collusion) Request a stay on further transactions or possession changes Submit a grievance to the State Registration Department citing concealment and forged withdrawal

P. Venu (Advocate)     24 July 2025

It is lawful to cancel or withdraw an already executed conveyance deed. This is permissible only through a decree from the competent civil court.

v m   24 July 2025

Thank you for your valuable input.

In our case, all red flags were ignored:

✅ The subsequent buyers registered the sale deed (No. 7931) on the same day and time as our original registry (No. 7932), even though ours was supported by a valid agreement.

✅ A forged withdrawal letter was used to cancel our registry, which was later confirmed as forged by the FSL report.

Sub-Registrar sent us a notice to produce a stay order within 3 days, but by the time we received the letter by speed post, the Sub-Registrar had already taken a false affidavit from the seller on 5th July 2023, falsely claiming our agreement was over—even though it was valid till 9th July 2023.

✅ The DORIS system showed the property as disputed, and multiple written objections were filed, yet the Sub-Registrar registered the property to the new buyers without NOC from us.

✅ The new buyers paid ₹55 lakh without any registered agreement to sell and took possession knowingly amid the dispute.

✅ The Sub-Registrar concealed the forged withdrawal letter for over 15 months. 

Given these facts, it’s hard to believe that the buyers acted in good faith. This seems like a clear nexus between the seller, buyers, and Sub-Registrar.

 Any additional strategic advice or relevant precedents would be greatly appreciated. Regards 

P. Venu (Advocate)     24 July 2025

My above posting may kindly be read as "It is NOT lawful to cancel or withdraw an already executed conveyance deed".

The lapse is regretted.

Dr. J C Vashista (Advocate )     24 July 2025

Presumably the property is located at Delhi accordingly its transaction details are available on Delhi Online Registration Information System, Govt. of NCT of Delhi,  isn't it ?

Whether registration of a sale deed is required to be supported by an Agreement to Sell ? To me, it not required and you are conceptually incorrect. 

You have stated your sale deed document No 7932 (original) was registered before document bearing No 7931 is unbelievble as 7931 comes before7932, please correct me if it is untrue.

Legally speaking a (rather any) registered document (including your sale deed No 7932) cannot be cancelled by Sub-Registrar, which can be cancelled by competent jurisdictional civil courts, please correct me if it is untrue. 

When and how did you come know regarding the fact that ".....a forged withdrawal letter was used to cancel our registry....", as stated by you ?

Subsequently who, why and when alleged forged withdrawal letter was sent to FSL which is stated to have later been confirmed as forged by the FSL report. ???

Is it probable / possible to register same property with next number in sequence for the same property with the same office ?? I have all my doubts.

You have further stated the sale deed has been registered by payment of Rs. 3,00,000/- as stamp duty. As I know stamp duty and registeration charges in Delhi is as under:

  • Stamp Duty:
    • Male Buyers: 6% of the property value. 
       
    • Female Buyers: 4% of the property value. 
       
     
  • Joint Ownership: 5% of the property value. 
     
Registration Fee:
1% of the property value, plus a ₹100 pasting charge. 
 
This is in addition to the stamp duty. 
How is the figure of Rs. 3,00,000/- has been calculated / paid by alleged subsequent fraud buyer ??
 
 

v m   24 July 2025

Thanks for your reply, In our case, Sale Deed No. 7932 was not registered, but had a valid appointment with supporting agreement. On the same day and time (30.06.2023), two sale deeds were presented at the Sub-Registrar IV-B office. The seller took our full payment, then deceitfully sold the same property to other buyers (Sale Deed No. 7931). A forged withdrawal letter was used via deficiency memo to show fake withdrawal of 7932 sale deed and allow 7931 to proceed. This forgery came to light 15 months later through RTI, and FSL has confirmed the signature was forged. Both we and the Sub-Registrar had sent notices to the new buyers before their registration, but they never responded. Now we ask—can such buyers be considered bona fide? They paid ₹55 lakh without agreement, amid DORIS-dispute & objections. Kindly advise.

 

P. Venu (Advocate)     24 July 2025

The facts posted suggest deeper issues. Please post complete facts.

Dr. J C Vashista (Advocate )     24 July 2025

Consult a local prudent lawyer for proper appreciation of facts / documents and professional adviise.

If you are in Delhi and feel so, may contact me with relevant recordson prior appointment for professional advise.

T. Kalaiselvan, Advocate (Advocate)     25 July 2025

Well explained by experts above, you may better proceed on the advise of your own advocate on all such further issues.

v m   25 July 2025

A suit for cancellation of the subsequent buyers’ sale deed has been filed in the High Court. However, our lawyer is now stating that the subsequent buyers may be considered innocent and that the court may not cancel their sale deed, holding only the seller responsible.

But the fact remains that the subsequent buyers ignored both our legal notice and the Sub-Registrar’s notice, and still proceeded with the registration of the property. Moreover, they obtained the registration based on a forged withdrawal letter of our earlier sale deed, which clearly indicates their involvement or at least knowledge of the fraudulent act.

Dr. J C Vashista (Advocate )     25 July 2025

@ v m

Most of my observations / questions have been overlooked and ignored  by you, wherein you did not bother to reply,  however, it is your own case / choice.

You have stated to have filed suit for cancellation of sale deed (value at Rs. 55 lakh) i.e., in Delhi, it will not be accepted by  Delhi High Court being below Rs. 2 crores but it has to be filed in the District Court of jurisdiction.

When you have already engaged an able, competent and intelligent counsel, what is the purpose of seeking second opinion by posting such queries based on fabricated / concealed facts ????

Can you please close this thread. 

 

 


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