Hello Mr. Suraj Ramanath,
I have gone through your query and fully understand your situation. Allow me to offer some advice that I believe will be helpful to you.
There are certain laws that protect a buyer’s right to verify the license and legal status of a property. You have the lawful right to confirm that the property has a clear title, is free from hindrances and is not under any acquisition conflict.
As per Section 17 of the Registration Act, 1908, all property dealings must be registered to secure their legitimacy.Further more, Section 55(1)(g) of the Transfer of Property Act, 1882 binds the seller to reveal material facts, including any acquisition or hindrances. Under the Bangalore Development Authority Act, 1976, lands acquired by the BDA cannot be sold without a formal legal de-notification and you have the liberty and right to verify this. You may furthermore utilise the Right to Information (RTI) Act, 2005 to call for suitable documentations from the BDA about the acquisition or de-notification status of the property.
In your case, it is important to confirm whether the property has been formally de-notified by the BDA or if its acquisition has been lawfully reversed. You can pay a visit to the BDA office to substantiate this and receive an Encumbrance Certificate (EC) to ensure there are no mortgages, disputes, or encumbrances on the property.
If the BDA hasn’t formally de-notified the property, you could face serious issues down the line. For example, there’s a serious risk of eviction or even demolition if the BDA reclaims it. Legal disputes could also take place and selling or mortgaging the property later could become a hassle because of its unclear status.
Referring to the lawsuit of Offshore Holdings Private Limited v. Bangalore Development Authority (2011) would be best, as this was the case that illustrates that BDA acquisitions stay valid unless officially de-notified, even if the area is developed for residential use.
Thank you for reaching out to us. Please feel free to ask any follow-up questions that you may have.