If you've discovered that a builder is continuing to sell flats in a project while the underlying ownership of the land itself is under dispute in Ahmedabad, this raises serious concerns — both for you as a prospective or existing buyer, and for anyone contesting the builder's title — and the law provides several layers of protection depending on which side of the transaction you're on. As a starting principle, the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882, applies here just as it does to any other property transfer during pending litigation: any sale of flats or units by a builder while a suit concerning the underlying land's ownership is pending is subject to the outcome of that suit, meaning buyers take the risk that the builder's title may ultimately be found defective.

If you are the party disputing the builder's title to the land, your immediate protective step should be to seek a temporary injunction under Order 39 Rules 1 and 2 CPC restraining the builder from further selling, transferring, or creating third-party rights in the disputed property until the suit is resolved — courts take this seriously, particularly where continued sales risk creating numerous innocent third-party purchasers whose interests would complicate any eventual resolution. Filing this application promptly, ideally at the outset of the suit, is important, since delay allows more units to be sold and more parties to acquire potentially conflicting interests.

If you are a flat buyer who has entered into an agreement with a builder whose title is now under a cloud, the Real Estate (Regulation and Development) Act, 2016 (RERA), offers significant protection — under Section 11 of RERA, promoters are required to disclose all relevant details of the project, including title status, and any material non-disclosure regarding pending litigation over the land can form grounds for a complaint before the Gujarat Real Estate Regulatory Authority (GujRERA), potentially entitling you to refund with interest under Section 18 of the Act, or compensation, depending on the facts.

Builders are also required under RERA to register projects and disclose encumbrances, so verifying a project's RERA registration and title report before purchase is a genuinely important precaution — and if you've already purchased and later discover undisclosed litigation, this disclosure failure itself becomes a strong basis for relief before GujRERA or the civil courts.

Where the builder proceeds to sell despite an existing injunction, the enforcement mechanism under Order 39 Rule 2A CPC applies, potentially allowing attachment of the builder's assets or civil detention for wilful violation.

Because builder-title disputes typically involve navigating both civil court litigation and RERA proceedings simultaneously, coordinated legal strategy is essential. Our panel of retired judges and real estate law specialists is available through reach out via Aapka Legal Advice to help you determine the right combination of remedies.

For representation before Ahmedabad's courts and GujRERA, the Top Property Lawyers in Ahmedabad | Aapka Legal Advice directory can connect you with suitable counsel.

In conclusion, a builder selling flats during a pending ownership dispute in Ahmedabad exposes both the builder and buyers to significant legal risk under the doctrine of lis pendens, but you have real protective remedies available — an injunction under Order 39 CPC if you're contesting title, and RERA-based relief under the Real Estate (Regulation and Development) Act, 2016, if you're a buyer facing non-disclosure.