Section 297 urgent

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amit jain (Querist)

07 March 2013 Dear all,

if a private limited company having a paid up capital of Rs. 2 crore agrees to lease a land from the father of the director then will it attract 297 & permission of central government is required. What if the paid up capital is less than 1 crore !

Please Guide.

Amit Jain

Ajay Mishra

Ajay Mishra (Expert)

07 March 2013 Section 297 does not apply to:

1. Giving or taking loans.
2.Contract in respect of immovable property (as it is not 'good' ).{Letter No. 9/4190-CL-X dated 27.03.1990}.
3.Contract between two public Companies.
4.Contract of employment of director or managing or whole time director.[ Circuler No.8/11/75-CL-V dated 27.03.1975]
5.Contract for employment of relative of director.
6.Contract entered into by the company with the dealer on principle to principle basis. [Circuler No. FM 8/297/56-PR dated 02-08-1956]
7. Professional services of the nature given by firms of solicitors and advocates, etc.[circuler No. 8/11/75-CL-V dated 05.06.1975]
8.hiring of office premises on rent as the transaction is in immovable property. [Department Clarification dated 10-09-1990]

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