1. What i the basis of the claiming the land as that of the Govt.
2. In many cases the govt land is not shown to be the encunbered land adn decalred as freehold land in registration office.
3. However if that is so then you have no fault and on the contrary you can cash in on the no encramurance certificate which is given by the govt only.
4. Since a public notice has been given by the govt for auctioning of the same, you have to stall it and to do the same you can file writ application in high court to quash the govt notice.
5. If it is done then it is good for you. Even if it is done as the land indeed is found to ve govt one then aslo you will be compensated by the govt.
6. So meet a good civil lawyer asap.