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Land registration dispute

We have got into a issue where the same land is found to be registered by two people. My dad bought a land in 2004 from Mr X whihc we never knew that it was already registered in the name of Mr Y. We paid  four lac & encircled the plot with brick wall. The other party(Mr Y) approached us only after 5 months of our reigstration & claimed his ownership of the land.The land was on dispute & nothing finalized on it. Now in Feb 2013,Mr Y has sold the same land to someone else for 10 lac with the help of some powerful man of that area & he is construting the house. We apporached the nearest police station but the police responded that since the documents owned by Mr Y are proper , nothign can be done.Since the other party has support of some powerful people ,i wanted to understand if we can legally take action against them so that they atleast return my dad’s hard earned money.But problem here is that  Mr X from whom we bought the land is not in a condition to return our amount as he been ailing & had druken all his money.Please help

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