Indemnity clause protects you in event of third party claims being made 

2) reselling will not be an issue 

3) the risk is adverse decision by courts against the developer.if encroachment is priced tjen portion of land will have to be vacated 

Indemnity bond can Secure your position if they default in any way but you need to again go for litigation. Bank guarantee will be better option.

yes g you have ownership then you can resell it

1. The worst case scenario in this case could be that the court finds that the sellers have indeed encroached on the lake land or forged the documents, and orders them to vacate the land and demolish the project. This could result in a loss of your investment and legal troubles for you as a buyer.
2. The risk to you as a buyer under such a scenario depends on the terms and conditions of your sale agreement with the sellers and the builder. You may have to check if there is any clause that protects your rights and interests in case of such an eventuality. You may also have to consult a lawyer to understand your legal options and remedies.
3. The indemnity clause that you have mentioned may provide some protection to you, but it may not be sufficient or enforceable in all situations. For example, if the sellers are unable to pay the compensation or if they go bankrupt, you may not be able to recover your money. Also, if the court finds that you were aware of the disputes and still bought the property, you may not be able to claim indemnity. Therefore, it is advisable to seek legal advice before relying on such a clause.
4. Reselling the property may be of concern if the litigations are not concluded, as it may affect the market value and demand for the property. You may also face difficulties in finding buyers who are willing to take the risk of buying a disputed property. Moreover, you may have to disclose the pending litigations to the prospective buyers, as per the law.
5. There are many precedents of similar cases where buyers have suffered due to land disputes and builder defaults. For instance, in 2018, the Supreme Court ordered the demolition of four apartment complexes in Kochi that were built on a coastal zone in violation of environmental norms. The court also directed the builder to pay Rs 25 lakh each to 140 buyers who had invested in the project. Similarly, in 2019, the Supreme Court ordered the cancellation of registration of Amrapali Group, a real estate company that had failed to deliver flats to thousands of homebuyers in Noida and Greater Noida. The court also directed the National Buildings Construction Corporation (NBCC) to complete the pending projects and appointed a receiver to manage the affairs of the company.

1. There seems to be a violation of law and land grabbing issue involved in this. The seller should have sorted out the problem before selling the property.

The temporary injunction granted to the seller is not the proper remedy neither it is a licence given to seller to sell the illegally encroached or grabbed property.

Now you have to wait for the decision by High court in the writ petition.

2. If the court declares that the seller has illegally grabbed the portion of property now under dispute, then the decision about the sale of property also would be decided accordingly.

3. No doubt it will take time to enforce the indemnity.

4. It depends on the buyer, even otherwise the indemnity clause will continue from your side to the new buyer.

5. There are plenty of such judgements, you can ask your advocate to search for it 

1. If the government's claim is proved, the promoters have to surrender that parcel of the property.

2. If the buyer's property falls within that parcel, the vendor-promoters have to compensate the buyer.

3. Yes, the buyer can invoke the built-in indemnity clause against the vendor-promoters.

4. Yes, it is not advisable to sell it pending litigation.

5. Yes, quite a lot.

Dear Client

Worst Case Scenario:
The worst-case scenario in this case would likely involve a protracted legal battle with ongoing litigation surrounding the property. This could result in a significant delay in your ability to possess and use the property as intended. In the most extreme case, you may lose ownership rights to the property if the court rules against the sellers and finds that the property was obtained fraudulently.

Risk to the Buyer:
As the buyer, you could face several risks in this scenario:

Delayed Possession: You may not be able to take possession of the property as planned due to the ongoing legal disputes.
Financial Costs: You may incur legal expenses and costs related to defending your ownership rights or settling disputes.
Uncertainty: There could be uncertainty regarding the ultimate outcome of the litigation, and you may not have clear title to the property until the disputes are resolved.
Indemnity Clause:
The indemnity clause you mentioned is a protective measure that can offer you some recourse if you face losses due to encumbrances or legal disputes related to the property. However, the effectiveness of the clause depends on the financial strength of the sellers and their ability to fulfill their indemnification obligations. It's essential to consult with a lawyer to understand the specific terms and conditions of this clause and how it would apply in your situation.

Reselling the Property:
Reselling the property in the midst of ongoing litigation can be challenging. Potential buyers may be hesitant to purchase a property with unresolved legal issues, and you may not be able to get a fair market price until the disputes are resolved. You should also consider potential legal obligations and liabilities when reselling the property.

Precedents:
It's possible that there are similar cases where buyers have faced difficulties due to property disputes. However, each case is unique, and outcomes can vary based on the specific facts and legal arguments presented. Consulting with a lawyer who specializes in property and real estate law in India can provide you with more information on any relevant precedents and how they might apply to your situation.

If the legal disputes related to the property are not resolved in favor of the sellers, and the property cannot be said to be holding clear title or encumbrances. It will be considered as legally problematic or even unsellable.

As the buyer, you may face several risks:

• If the property's title is found to be defective or encumbered, you may not have clear ownership rights.
• It will be a time-consuming and costly affair, potentially leading to financial losses.
• Reselling the property might be challenging until the legal disputes are resolved.
• If the court orders eviction of occupants, including you, you could lose the property and your investment. Refer Campa Cola Case in Mumbai. 

The indemnity clause can provide some protection by obligating the sellers to compensate you for losses. However, the enforceability of the contract and the financial capacity of the sellers will be taken into consideration while dealing with indemnification obligations.

- As per law, the temporary Injunction is for the period of proceeding of the case , and it may lost it legal value upon the adverse decision of the court .

- Since, there is government departments are involved in the case , then there is chances of relief in the favour of the seller is not high . 

- Hence , you should wait for the final decision of the High Court and also trial court. 

- The indemnity bound will not safe you fully .