Mortgaged land cannot be sold out coz you are not the owner in the eyes of law. But there is a way to get out of this situation.

Your further clarification is welcome at nominal fee at;

adv.kamal.grover@gmail.com

Advocate

PB. & HRY. HIGH COURT CHANDIGARH (INDIA)

With Regards

You are entitled to raise construction and may sell the property to clear off the mortgage amount. A proper agreement may be got drafted with the help of a local lawyer. Good Luck.!

in this situation, you need to enter a collaboration agreement instead of mortgaging your property with the money lender. you can incorporate all the terms and condition of the transaction and get the same registered by the sub registerar. as suggested by Mr. Grover, you would not be able to sell a mortgaged land to a third party unless the mortgage is cleared by paying the amount and no purchaser would pay you 100% of the sale consideration in advance.

You cannot sell the mortgaged land unless the debt is cleared.