Capital gains

Ex: A has sold a property for 17 lacs ( mutual understanding) to B but B has taken excess loan from Bank for 28 lacs so Bank will give 28 Lacs to A and then A will return 11 Lacs to B (over and above 17 Lacs). A has bought the house in 2011 so it is long term capital gains but A took it on loan so A has to pay 14 Lacs remaining amount which he will pay from the 17 Lacs received so total balance left with A will be only 3 Lacs. I need your guidance on below things: 1. Whether A can pay the loan on EMI as he is paying till now and claim 80C deduction on it and Invest 17 Lacs in 54EC as residential property is sold and pay LTCG 10% with indexation on the balance amount? 2. Can B clear the loan of A and claim it as cost of improvement? please help