A private limited real estate company (builder) received advance payments from intending purchasers towards flats under construction in a particular project in August / September 2010. Two types of intending purchasers are seen – one who have made down payments and another who have availed home loans from banks. This company has reported in its balance sheet for FY 2010-11, down payment customers under the “List of Unsecured Loans” and the purchasers with bank loans under “List of Customer Advances”.
This company had also developed another project in which purchasers had paid “Interest Free Maintenance Security (IFMS)”; which is a form of deposit with the builder towards providing maintenance services. In its balance sheet FY 2009-10, this company has shown this IFMS component (Rs. 93,76,280/-) under the “List of Unsecured Loans”.
For FY 10-11, the company secretary firm, in its compliance certificate has specifically mentioned that “The Company has not invited/accepted any deposits including any loans falling within the purview of Section 58A during the financial year. Secured Loans As On 31-03-2010-Nil. As On 31-03-2011-Nil. Unsecured Loans As On 31-03-2010 - Rs. 7,40,04,032/-. Unsecured Loans As On 31-03-2011- Rs. 20,36,04,258/-”. There is no such statement on unsecured loans in the compliance certificate FY 09-10. Similar unsecured loans are reported in balance sheets for FY 2005-06, 2007-08, 2008-09.

All these annual filing documents were downloaded from MCA website for public inspection by paying the requisite fees.

Given the above, can you please guide on the following:

a) Can such unsecured loans be taken from general public under the Companies Act 1956?
b) Is there any specific exemptions given to real estate companies to show customer advances as unsecured loans?
c) If this is incorrect disclosure & violation of the Companies Act 1956; how can this be legally challenged? What is the procedure?
d) Under the law, what are the penalties & consequences of such violations?
e) Are there any precedents from company law board, high court /supreme judgments?

May please advise & guide.

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Dear All

Pls tell while filing e-form 2 for LLP incorporation there is one attachment named "proof of address of registered office"which is required to be attached with this form.....

my query is what is required to be given as address proof for the same as the proof of Registered Office Address of LLP will not be available since it is still under formation and nothing is mentioned in instruction kit also for the same..

within how much time LLP is required to have a registered office. and whether it will be at a separate place or residence of any of the partners can also be used as a registered office.

pls reply ASAP....... regarding this and the address proof of which place is required to be attached ?



your expert comments are awaited.......

thanks and regards

Dear All

Pls tell while filing e-form 2 for LLP incorporation there is one attachment named "proof of address of registered office"which is required to be attached with this form.....

my query is what is required to be given as address proof for the same as the proof of Registered Office Address of LLP will not be available since it is still under formation and nothing is mentioned in instruction kit also for the same..

your expert comments are awaited.......

thanks and regards

can a executive director(other then MD/WTD) get monthly remuneration from two or more than two company.