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RajeshKumar (Manager)     10 October 2012

Shares of unlisted company

Respected sir,

I have invested in an real estate company who has promise to me that they are in the process of comming up with an public issue.

Based on that, i have made an invetment of Rs. 70000/- during 2008. After that they have paid the interest for first year for the investment (2007 - 2008).

However after that there has been no communication from their side. I have personally visited the comapny 2 times to know the status .However both the time their reply was not clear and they say that they have applied for public issue and the issue will come in 3 to 4 months. and regarding interest payment they say that the management has to decide on the same.

Further for the past 3 years I have been in touch with them over phone however the reply is same.

I have sent emails to them, but they are not replying to my emails also.

I have recently sent a registered letter via post asking for their balance sheet in September. Now one month has passed and there is no reply from them.

 

I wanted to know what could be the course of action for me to recoever my money back from them.

 

Looking forward for your reply.

 

Regards,

Rajesh

 



Learning

 2 Replies

P.K.Haridasan (Advocate)     10 October 2012

From the details, it is not clear in what nature you have given the money to the Company. If it is for shares, they must issue shares to you to the extent of money invested by you. If it is a loan, a private company cann ot take loan from outsiders. If the share is already issued, have you got the share certificates. Upon shares, you are not entitled to get interest. Have you got any kind of receipt? please check it  up. 

GURMUKH (CS)     12 October 2012

Mr Rajesh check name of company. If it ends with words Private Ltd, it canot come with Public Issue. Only Public Limited Company can come with Public Issue.


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