Laws afactng business plan
Nirmal Jain
(Querist) 04 June 2016
This query is : Resolved
One of my friend is planning to start a real estate (construction and sales of flats) business in a private limited company format in Maharashtra. In order to attract customers, he is planning to launch a lottery scheme. Customers selected under lottery will get flats at reduced rate.
For participating in lottery, customers will have to pay a non-refundable token amount.
I want to understand what all laws would be required to be complied with under this model of business apart from company law, taxation laws (income tax, VAT, Service Tax etc.), new Real Estate Regulation Act.
Is there any law to be complied with for this lottery scheme in Maharashtra?
Adv. Yogen Kakade
(Expert) 11 June 2016
In Maharashtra you cannot start a lottery scheme. For that purpose you need to get the prior permission.
