In a major relief for property buyers across Maharashtra, the Bombay High Court has ruled that once a land sale is legally completed with government permission, registration, and possession transfer, authorities cannot revoke it years later based on old disputes.
The judgment, delivered by Justice Amit Borkar on Thursday, quashed a 2014 order by the Divisional Commissioner that had cancelled a sale permission for agricultural land affected by project rehabilitation rules.
What Happened in This Case?
The dispute centered on a plot in Pune district, originally owned by a project-affected farmer, Sahebrao Tatyaba Barke. In 1995, he signed an agreement to sell the land to one Satish Tanksale, but no legal action was taken to enforce it for over 15 years.
In 2010, Barke sought and received permission from the Sub-Divisional Officer under Section 12 of the Maharashtra Project Affected Persons Rehabilitation Act, 1999, to sell the land to Uday Bhanudas Gujar, a 65-year-old agriculturist from Pune.
Following the approval:
- A registered sale deed was executed in March 2011.
- Possession was handed over.
- Gujar’s name was entered in revenue records.
However, in 2011, Tanksale assigned his old agreement rights to Madan Yeshwant Diwan and Alka Diwan, who began interfering with Gujar’s possession. They filed a delayed appeal in 2011, and in 2014, the Divisional Commissioner cancelled the sale permission, claiming the original owner had “suppressed” the 1995 agreement.
Gujar challenged this in the High Court through a writ petition filed in 2014.
Why the High Court Ruled in Favor of the Buyer
Justice Borkar held that the Divisional Commissioner’s order was illegal on multiple grounds:
- No Right to Appeal: The Rehabilitation Act does not allow appeals against orders granting sale permission. Authorities acting under this special law cannot be challenged through general revenue code appeals.
- Once Completed, It’s Final: After permission is granted and the sale is registered with possession transferred, the authority loses power to cancel it. There is no provision for review or recall.
- Old Agreements Don’t Matter: A mere agreement to sell creates no legal title. Since Tanksale never filed a suit for specific performance, his claimants had no standing to challenge the new sale.
- Procedural Flaws: The appeal was heavily delayed, and the Commissioner decided on merits without even approving the delay condonation.
The court restored the 2010 permission and declared Gujar’s registered sale deed fully valid.
What This Means for Common Homebuyers and Land Purchasers
This ruling is a big win for anyone buying restricted lands, such as those allotted under rehabilitation schemes for dam or project-affected families in Maharashtra.
Key takeaways:
- Registered sale deeds provide strong protection against later challenges.
- Buyers don’t need to fear hidden old agreements resurfacing to undo completed deals.
- Government officials cannot revisit approvals after transactions are finalized.
- It reduces risks in agricultural or rural land purchases, common in areas affected by irrigation projects.
Legal experts say this reinforces buyer confidence in property markets, especially where special permissions are required.
Court’s Strong Words on Jurisdiction
The judge emphasized that authorities cannot assume powers not given by law, even if they believe they’re correcting a wrong. Relying on a Supreme Court precedent, the court said jurisdiction is a matter of law, not convenience.
The petition was allowed with no costs imposed.
Also Read: Unauthorized Occupants Cannot Claim Ownership Of Land Simply By Occupying It For Years: Bombay HC
