What action can be taken against the illegal transfer of property?

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Property is a bundle of rights and interests. Transfer of property means passing of these rights and interests to someone else. Owner of the property has the right to transfer the property as per his own wish subject to provisions of law.

If the property is transferred using illegal means, it is an illegal transfer. Here we are assuming that the real owner is not involved in the unlawful act. The actual owner has also been the victim. Someone else has managed the transfer of property using the means which have rendered the transaction illegal.

Transfer will be considered as illegal if it is done on the following basis:

1. Forging the documents — Forging the documents implies preparing the false documents like a Will, gift deed, sale deed etc. or forging the signatures on the documents, vide which the transfer has been effected.
2. Misrepresentation of facts- If the transfer has been done by concealing some of the facts or by impersonation i.e. someone misrepresents himself as the owner before the Registering Authorities and sign the papers for effecting the transfer of property.
3. Misuse of Power of Attorney — NRIs, most of the time, execute power of attorney in favour of family members or friends. There are always chances of misuse of such PoA where the PoA holder acts in a way
4. Preparing fake documents, e.g. preparing a fake Will to create evidence of ownership and transferring the property on the basis of said Will.

Remedies available to the owner: The owner can take any of the following remedies.

A. Remedies under Civil Law- Filing appropriate civil lawsuit

1. A civil suit for an injunction can be filed. The prayer is made to the Court for restraining the party from the disposal of the property.
2. The actual owner can file a civil lawsuit for declaration and possession. The Court may declare him the owner and pass the possession of the property to him.
3. A civil suit can be filed for cancellation of conveyance deed vide which the property has been transferred illegally.
4. A civil lawsuit can be filed for declaration of conveyance deed as null and void with respect to the share of the owner. i.e. The owner can seek a relief from the Court that as far as his share in the property is concerned, the transfer may be declared as null and void. It happens mostly in properties held jointly by co-owners, legal heirs.
5. A civil suit for partition of the property and separate possession in case the property illegally transferred is joint property.

No need to file separate lawsuits for each relief. There can be joinder of reliefs depending upon the facts and circumstances of the case.

B. Requesting Registering Authority –

1. An application is made to the registering authority not to register the conveyance deed transferring the property illegally.
2. Land records can be verified, and the revenue authorities can be requested to correct the errors if any. The discrepancies can be brought to their notice as it helps to prevent fraud. Revenue Authority does not have much power in this regard. Mostly, the records are corrected as directed by the Court.

It is essential to update the revenue records so that the name of the real owner is reflected clearly in the public records.

If the conveyance deed is registered and cancelled later on, the cancellation deed also has to be registered.

C. Remedies under Criminal Law — A complaint can be filed to the Police if the facts of the case make out an offence under Indian Penal Code. e.g. cheating

It is always better to consult a lawyer and obtain legal advice before availing any of the above-stated remedies.