WHETHER OFFERS MADE BY A COMPANY IN THE PROSPECTUS ARE LEGALLY BINDING?
Querist :
Anonymous
(Querist) 14 April 2011
This query is : Open
A non-profit charitable trust is engaged in providing housing needs to a particular class of society.
This trust founded by 08 members is registered as a Company as per section 60 of the Companies act.
The so called company makes several several false promises in the prospectus, due to which buyers get allured to enter in a contract of sale/purchase of property.
Subsequently, promises made in the Prospectus turn out to be false.
As the company is not able to furnish proofs of the promises, buyer asks seller to compensate him with regard to the false promises made by him.
Company against the wishes of the buyer, deposits money in the buyer's bank account after making deduction of Rs 5000/-, causing Breach unilaterally.
Can the company be held Criminally liable for the false promises, made in the prospectus?
FIR has been lodged for Cheating.
Is Company Criminally liable for making misrepresentation/false promises, if the facts are proved?
