Public deposits in private limited

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Amol Patil (Querist)
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02 September 2011 XYZ private Limited company,company is in business of developing residential plot and wants deposits from public. It has a scheme in which, if a person invest amount in company's 3 years, 5 years & 6 Years (Like R.D. F.D. etc) and at the time of maturity pay him some amount. as per agreement between company & Depositors
can company do so?
if yes what the procedures?

vignesh

vignesh (Expert)
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02 September 2011 Dear Amol Patil,

Sell the land in the installment basis (Hire Purchase). After the completion of the total payment to the company, you can transfer the ownership to the public who are the investor of the company in that scheme. and it does not comes under the public deposit.