One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr.Y approached me when his property purchase in Area X of City A got stuck for over two years. He had paid 30% of the total amount to Mr.X, the seller, and executed a notarized sale agreement for a plot in panchayat limits. The issue arose when e-khata became mandatory for sale deed registration. Despite having a valid agreement, Mr.X was now demanding an additional 50% payment before proceeding with the e-khata application and registration process. This created a deadlock situation where Mr.Y had already invested significant money but couldn’t complete the transaction due to administrative requirements and the seller’s additional demands that weren’t part of the original agreement.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Review your sale agreement thoroughly to understand payment terms and seller’s obligations. Document all communications with the seller regarding additional demands. Explore specific performance remedies if the seller is breaching the original agreement terms. Consider mediation before approaching court for faster resolution.

Applicable Sections of Law

Under BNS (Bharatiya Nyaya Sanhita), Section 316 deals with criminal breach of trust if the seller misappropriates your advance payment. Section 318 covers cheating if false representations were made about property documents. BNSS (Bharatiya Nagarik Suraksha Sanhita) Section 173 governs investigation procedures for financial disputes. The Specific Relief Act provisions for specific performance of contracts also apply. Registration Act amendments regarding e-khata compliance create additional legal obligations for both parties in property transactions.

If You Are the Complainant

• File a complaint under BNS Section 316 if seller refuses to return advance money or complete transaction
• Gather all payment receipts, bank statements, and agreement documents
• Document seller’s breach of original payment terms through written communications
• Approach consumer forum if this constitutes deficiency in service
• Consider civil suit for specific performance and damages if criminal complaint doesn’t resolve the matter

If You Are the Victim

• Immediately stop any further payments until legal clarity on seller’s obligations
• Send legal notice demanding completion of transaction as per original agreement terms
• Apply for property attachment if you suspect seller might sell to another party
• File caveat in sub-registrar office to prevent clandestine registration to third parties
• Maintain detailed records of all expenses incurred due to delay in registration process

How the Police Behave in Such Cases

Police initially treat property disputes as civil matters and may be reluctant to register FIR. They often suggest compromise or civil remedies first. However, if clear evidence of cheating or criminal breach of trust exists, they will investigate under economic offences. Police may recommend mediation through Lok Adalat. Documentation of financial transactions significantly influences their willingness to pursue criminal investigation against the seller.

FAQs People Normally Have

Can seller demand additional money beyond agreement terms? No, seller cannot unilaterally change payment schedule without mutual consent and legal documentation.

Is e-khata buyer’s or seller’s responsibility? Typically seller’s responsibility unless specifically mentioned otherwise in agreement.

Can I recover my advance if registration fails? Yes, through specific performance suit or refund claim with interest and damages.

How long can seller delay registration? Reasonable time as per agreement terms; beyond that constitutes breach of contract.

What Evidence Is Required?

• Original notarized sale agreement with clear payment terms
• Bank statements and payment receipts for amounts already paid
• Written communications between buyer and seller regarding additional demands
• Property documents and title verification reports
• E-khata application status and related correspondence
• Witness statements if oral agreements were made
• Expert valuation reports if property value disputes arise

How Long Will the Investigation Take?

Investigation typically takes 3-6 months depending on case complexity and evidence availability. Police may complete preliminary inquiry within 30-45 days. Court proceedings for specific performance can extend 1-2 years. Alternative dispute resolution methods like mediation can resolve matters within 2-3 months. Timeline significantly depends on cooperation from both parties and clarity of documentation provided.

Advocate Sudhir Rao, Supreme Court of India