Manoj Gupta 14 June 2023

Financial fraud

In 2019, 100 of us got together to form a society with a purpose to buy land for residential purposes.
Everyone contributed 6.5 lakhs totaling close to 6.5 cr. With this amount, a land was bought in 2019 itself.
All of it was going fine till some of us got access to sales deed and agreement letter recently. We were surprised by below expenses.

Sales deed(Total land cost): 5 cr
Registration + Stamp Duty: 35 lacs
ABC Company: 1 cr

We were shocked by the 1 cr amount given to ABC Company. As per the president, original land sellers sold the land via ABC company and hence they needed some amount to be paid. This high amount of 1 crore appears totally illogical to us. A notice has already been served with no acceptable reply. What can we do next as management is not ready to answer. Should we go to police as we suspect a case of cheating?

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6 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 14 June 2023

Before filing a case, you have to verify the statement which was submitted to the Income Tax Office.

T. Kalaiselvan, Advocate (Advocate) 14 June 2023

If you feel that the seller has done fraud on you people then you can approach police for the offences of fraud and cheating, however to recover the excess amount you may have to file a civil suit in addition to the criminal complaint

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Dr. J C Vashista (Advocate ) 15 June 2023

You have the option of filing complaint of cheating and fraud before local police as advised by experts herein above, which I agree.

and/ or

Suit for recovery of amount paid in excess

It would be appropriate to show all relevant documents to a local prudent lawyer for appreciation of facts, professional advise and necessary proceeding

Sudhir Kumar, Advocate (Advocate) 15 June 2023

please read society MOU.

Manoj Gupta 15 June 2023

Its a welfare society formed on No loss No profit basis by likeminded people. But from sales deed and expense statement it seems that the President misued his powers for own benefit

T. Kalaiselvan, Advocate (Advocate) 15 June 2023

If any individual is reported to have been involved in embezzlement or misappropriation or any fraudulent activities in this connection, he can be booked for various offences as per law.

You may initiate legal action along with other affected individuals through your lawyer.