Urgent query regarding sales in case of flat sales anybody

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 hello friends

           i m doing audit  of real estate builders,when i am examining sales of flats then i ovserved a number of  differences in sale price of flats which are lower than other registery amount of flats  ( diff.amount say 10laks )due to some genuine reasons such as date of booking of flat but in many cases mgmt is execusuing  that the buyer is from refrence of relatives/purchasing more flats/booking is not well/from brokers refrence etc.

   I want to ask the reasons which are said by mgmt. is reasonable and policy of  company is not prejudice to the stakeholders.

if anyone have any other treatment/suggestion please tell me with the source of their legal view/ guidance note



Replies (1)

Hai.... The company can have its own pricing policy which should have been approved in BOD meeting. Mangaments reply should be accepted if its as per above approved policy but when flats are sold for relatives then care should be taken the company should have complied with 309 and 314 sec of companies act. Related party transaction should be approved in BOD meeting. Interested director should have expressed his interest and he should not have voted. AS - 18 standard deals with disclosure of related party transaction that should be observed


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