Legal Question in Criminal Law in India

Hello

Important thing is this a white money transaction of black money transaction.

If it is white money transaction

(1) Lend money by cheque only against the name of the Construction Company Only, not against any individual director etc.

(2) Get executed a promissory note from the Construction Company. Before getting executed note, ensure who is executing the note on behalf of company, and his authority to bind company

(3) Execute a deed of acknowledgment of debt

(4) Execute a Loan Agreement and get it registered with the Registrar of Document and also with RoC

(5) And if agreed then take advance cheque as security

These are sufficient safe guards to ensure your money back.

However, if it is black money transaction, then also you can get all executed as aforesaid, but there will be problem if time comes for enforcement, regarding IT clearance etc.

Let me know should you have any query.

Vivek N Mapara

Attorney-At-Law

[email protected]

i agree with Adv Vivek

Most States have local laws regulating and/or prohibiting money lending. Check those laws and act accordingly.