S. Gururaj v. The Additional Chief Secretary/Commissioner of Land Administration and Others (with connected appeals)
Background
Land classified since 1911 as a government water tank was fraudulently granted a ryotwari patta (ordinarily meant for agricultural land) in 2011, decades after the limitation period for such claims expired. The patta-holder mortgaged part of it to a bank and transferred another portion on which a builder constructed and sold 20 flats. A third party's challenge led the Commissioner of Land Administration to cancel the patta as fraudulent in 2019, a decision the Madras High Court upheld, ordering demolition.
Decision Breakdown
The Supreme Court upheld the cancellation, holding that land classified as a tank or pond can never be converted into private ryotwari title, regardless of who occupies it or for how long, or what private sale deeds exist on top of it. However, recognizing the flat owners had purchased in good faith relying on official records that didn't disclose the fraud, the Court modified the demolition order to require the state to first allot an alternative site to affected flat owners within six months before demolishing the structures.
Lesson Learnt
Government-classified water bodies can never be converted into private title no matter how many years of transactions accumulate on a fraudulent original grant, but courts will try to protect bona fide purchasers from losing their homes outright even while refusing to validate the underlying fraud.