Transfer of immovable property by one company to another in the same group
Deepak Nair
(Querist) 23 May 2014
This query is : Resolved
Dear Learned Experts,
Kindly advise me on the below given issue.
One company wants to transfer an immovable property to another company in the same group. The immovable property is an office premises on a building which is governed by a society.
Bothe the companies are part of a same group of companies. The directors of both the companies are also the same.
As per my understanding, the immovable property can be transferred vide an agreement by paying applicable stamp duty on current market value of the property.
My question is, is there any other way to transfer the said immovable property without executing a sale deed or conveyance deed?? If yes, can the society play any role in such kind of transfer?? Is the stamp duty applicable when both the companies are of the same group with same board of directors??
Kindly advise.
Advocate. Arunagiri
(Expert) 23 May 2014
In the eye of the law, both the companies are two different entities, even though they belong to same group.
If you want the title to be transferred in the sister company, you have to pay the registration charges and stamp duty.
In case of merger of X company with Y company, the properties of X will go Y company. By this no need to transfer the title deeds. At the time of selling by producing the necessary papers for the merger, Y company can execute the sale deed.
Deepak Nair
(Querist) 23 May 2014
Dear Arunagiri Sir,
Thanks for your kind reply.
ajay sethi
(Expert) 23 May 2014
agree with MR arunagiri .
Rajendra K Goyal
(Expert) 23 May 2014
Well advised, agree with the expert Advocate. Arunagiri ji.
Hemant Agarwal
(Expert) 05 August 2014
1. Both the sister companies can execute a irrevocable MOU, for usage /lease, for limited or unlimited number of years, with appropriate clauses. The law allows this and the Society lawfully cannot object to this.
2. The above will circumvent the Stamp Duty and Registration fees, till both the companies are merged /brought over by the other.
Keep Smiling .... Hemant Agarwal
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