Legal Question in Real Estate Law in India
Dear Sir,
This is Gururaj From india. We are planing to start business in real estate field.
We want to Purchase Some land in Demanding Area and after making that area in sites , we want to Distribute in to the Customers with reasonable rate.
( Planing to give at the 50% discount of the market value)
The main problem is we don't have that much finance to purchase land.
So we want to arrange it from Bank. Before that we want to confirm the demand from the customers, hence we planing to collect a small amount of Rs 350/- as
Demand Application Money from the Customers.(NON REFUNDABLE )
If we collect more application than the land then we will select through draw in front of the customers.
My problem is Whether we can do like this ? If we did like this is there any legal problem we will have to face ? please help me.
Thanks,
Gururaj.
4 Answers from Attorneys
You can do it very well as you explained and so does almost all the real estate venturers.The onus of your burden will be upon you and if you make anything illegal against the policy/scheme you mentioned the customers,you are liable.
You can do it but there are some legal formalities, else you may be penalize under chit fund security act. Plz also let me know about the same, if you r geniune.
Before doing so you have to contact a lawyer and have to draft a good contact.then you proceed according to contact otherwise there is every possibility of cheating case
Acceptance of money without any firm commitment or provision for refund may not be legal.
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