Taking over a business

p phipson (Querist) 22 July 2017 This query is : Resolved
There is a Proprietorship firm (unregistered) that has tied up for use of a space at a Community Hall with a BULK BOOKING Contract- ie use of the space for at least 150 hours a year at a very realistic rate (less than 60pct of the going rate per hour in Bandra). They are offering me a "relet" at a profit to them of 20 pct provided I guarantee them at least 200 hours per year.
It does seem lucrative for me but I am afraid as they have
1. No regstration
2. No permanent address
3. Not registered with the Police or the MCGM.
4. Have not paid Entertainment tax for the last 15 months.

They are working on the basis of personal relationship with some of the present Managing Committee.

Would I be putting myself into trouble.

Please advise me, sirs
Sincerely
P.Phipson

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Rajendra K Goyal (Expert) 22 July 2017
Commercial query, better show all documents to local lawyer and get appropriate advice.

Kumar Doab (Expert) 23 July 2017
You seem to have 1st hand feel of some violations.......
Avoid such deal...

Kumar Doab (Expert) 23 July 2017
Let your own counsel advise you after examining all docs and inputs.....
Don't risk your money and efforts till then.

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