Who repays tenant’s money if auctioned house was sold?

I bought a house in an auction from a bank. However, the previous owner had taken ₹60 lakhs from the tenant by entering into an unregistered agreement in 2023. How can the tenant recover his money, and who is liable to pay it?

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Advocate By LEAD INDIA Answered: 13 May 2025

Since the agreement between the tenant and the previous owner is unregistered and you bought the property legally, you're not liable to pay the tenant. The tenant can file a civil suit against the previous owner to recover his money, but he has no legal right over your ownership. For further legal assistance contact us on our helpline number.
 

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