direct capital investment in real estate project


I've a query regarding the captioned issue; some of my friend wants to invest money in a real estate project to be build up by his friends (a registered Partnership Firm). The project is going to start within a few months and he is going to invest Rs. 7,00,000/- against which he will get 15,00,000/- after completion of the project (within 18 months like that).

Now my query is whether he can enter into an Investment Agreement with that Partnership Firm? if not what is the possible way out.

Thanking you.

Sincere regards,
Sourendra Mohan Chattaraj
Senior Manager, Legal & Real Estate
ABC India Limited

Dear Mr. Chattaraj,

Why not and abosutely it is one's wish and view to invest and gain profits as business for the sake of his personal growth, provided he is satisfied in his investment which he risks for which he reaps as its returns.


In my opinion, the investor should do either one of the following at his will to authenticate his investment and his returns:


1. Act as a financier/ Investor to fund the project with the promised returns based on the project report provided by the firm, written agreed and signed by both the parties, with an exclusive Arbitration Clause with its jurisdiction added to it.


2. Enter himself into the partnership firm as one of the active partner and oversee all the activities which the firm does as regards the project to have a better control of his investment.


Kind regards,



Property due diligence 9422773303

15lacs for 7 within 18 months look like fishy for investment ipoint of view.The builer may not be able to return in terms of cash he may put an option of built flats.your friend may enter in agreement for those flats at low rate in case of default he can sale and pocket the investment and profit.



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