What should I do if my property is booked under MCD?

I recently bought a property with a bank loan. The bank verified the property. After the registry, I received a call from the bank lawyer stating that the property is booked under MCD. I contacted the seller, and he mentioned that he was not aware of this and that the bank had verified the property. However, neither the bank nor the seller is taking accountability for this. All money transactions, including the bank's loan, have been completed. If we pursue a legal case, we would only recover the money given through the bank, not the additional cash. What should we do? Should we take the property with a red stamp, cancel the deed, or file a criminal case? MCD may not provide an NOC, and all other floors could also face the same issue.