Stock market shares Donation
Kartik dhar
(Querist) 11 November 2010
This query is : Resolved
Hello Xperts,
I have been gifted/donated shares worth 45 lacs of Hindustan Unilever Ltd from an Indian resident (80yrs of age) (former employee of HUL). Now, these shares have successfully been transferred from 1st owner to me. Institutions involved are ICICI Bank and Religare Securities Ltd.
After almost a month when the letter stating the transfer of HUL shares reached the donors home, his son was surprised to know the fact that his father had so much shares worth 45 lacs.
Now, the donors son wants them back and states that his fathers shares have been acquired by me using unethical means (cheating, 420). I do not wish to return those shares to the donor.
I do not have any gift or donation deed made. The donors lawyer now is stressing on this point that there is no such donation deed. Says that under donation laws, any donation made above 75 thousand is not possible.
Can somebody throw some light on this?
Much appreciated.
Further Information:
I do not have any gift or donation deed made. The donors lawyer now is stressing on this point that there is no such donation deed. Says that under donation laws, any donation made above 75 thousand is not possible.
Now, the donor's son is claiming that the shares have been acquired by unethical means and has filed a complaint in the court of law. In order to prove the legality of the shares transfer (donation/gift), I only have the following documents:
1. Share Transfer slip indicating the reason of transfer (which is : Donation/Gift)
2. ICICI Bank Manager's official statement stating that "the Donor has willingly Donated the shares to the second donor" after personal meeting with the Donor.
I do not have Donation Deed or Gift Deed made. What repurcussions are possible in this matter?
Kindly advise.
s.subramanian
(Expert) 11 November 2010
If the donor chooses to challenge the gift on the grounds of undue influence,misrepresentation and duress ,you will have to prove the legality and validity of such a gift.
R.Ramachandran
(Expert) 11 November 2010
The whole thing certainly smells fishy. The age of the donar is another factor leading to suspicion whether the shares were really gifted. In what way Mr. Rohit is connected / known to the donor is also not clear. In any case the author of the query seems to be in a slippery wicket.
Kartik dhar
(Querist) 11 November 2010
Please read the Further information on this matter posted above and advice.
Kartik dhar
(Querist) 30 December 2010
thanks for all your help and support.
xoxo
