I am 34 yrs old male indian citizen living abroad since 2005 .
My father,current age 62, was a state govt employee and served as workers co-operative society president from 2009-2015. I learnt that during his tenure as president(2009 -2015) some funds to the tune of around 1 crore were misappropriated and criminal case was filed against him along with society clerk and other directors . He got suspended just 1 day before his retirement in Nov 2016 and all his pension benefits have been kept on hold as criminal case is still in progress. I am assuming the law will take its own course of action to find all guilty involved which I think will take atleast 3 - 5 years to deliver the verdict.
We bought a house in 2005 with a bank loan of 5 lakhs on my mom;s name(she is Life Insurance Corp agent) but that property has been attached to the case,saying we bought the house using misappropriated funds, which i think I will have to fight in court to show proof of funds used to buy the house, showing her monthly insurance commission details as she was an LIC agent since 1995.
Now in 2018, as a son , I want to transfer my personal funds available in my abroad bank account (earned thru my salary alone ) to my mom's (age 54) indian bank account and use those funds to buy shares and mutual funds on my mom's name.
The reason I want to do that is to avail the 0% tax for Long Term Cap gains and 15% for short term capital for indian residents , as I am abroad currently and have plans to return in 5-10 years down the lane, and then inherit those funds to my name and my children name when i return.
In this regard, my question specifically is , would law allow to link the ongoing criminal case against my father with the shares and mutual funds that i buy on my mom;s name in 2018 & beyond, using my personal funds , and confiscate everything on my mom's name in future since she is wife of convicted person(if incase proved guilty)?
Please advise if you see any risks of putting funds in my mom;s name?
15 January 2018
Your mother is not a co-accused in the criminal proceedings taking place against your father, although the property in the name of your mother is attached on the ground that it was financed using the misappropriated money for which your father is involved in criminal proceedings. The money transferred from a foreign country in your mother's bank account in 2018 is nothing to do with the money that is said to be misappropriated during 2009-2015. More so with all the proof the money is being transferred from your bank account in the foreign country to your mother's Indian bank account, the transfer is lawful, provided the annual limit of the foreign amount to be transferred to India should be kept in mind while doing so. The Mutual fund should be purchased by your mother in her name only not your father's name and not even jointly with him, your name may be mentioned as nominee in the Mutual Fund records. You being a NRI can give gift to your mother and let this amount be mentioned as gift given to the mother by son so that there doesn't arise issue involving you and your mother in FEMA issue at anytime.
15 January 2018
It is the duty of the investigating agency to find out the act of misappropriation and the utilization of the same. Currently, for any kind of money transaction, it is advisable to take care of any complications in future. Take a help of a good lawyer to help you and your father in this regard. While talking about the criminal case, it is necessary to know the stage of the case, allegations and sections mentioned in the FIR. Defend strongly with the help of collecting all the relevant evidences in the criminal case. All the best.
15 January 2018
Enquiry under the cooperative societies Act have lead the filing of the case.It will take years together to complete.I think conditional attachment has been resorted to. So, avoid in remitting any amount in yours ongoing account. Better opena fresh bank account and transfer the money by net banking so as to avoid any controversy in future.
Same Query: http://www.lawyersclubindia.com/forum/Anticipatory-bail-in-funds-misappropriation-case--109430.asp Other Queries: http://www.lawyersclubindia.com/forum/Bank-threatens-me-father-s-debt-son-liability-107649.asp http://www.lawyersclubindia.com/forum/Buying-family-property-98553.asp http://www.lawyersclubindia.com/forum/Maintenance-justice-for-innocent-house-wife-110213.asp