A Possible Extortion Case
Indian IPC
383. Extortion. — Whoever intentionally puts any person in fear of any injury to that person, or to any other, and thereby dishonestly induces the person so put in fear to deliver to any person any property, or valuable security or anything signed or sealed which may be converted into a valuable security, commits “extortion”.
Consider the case of following email by below organization.
Admin Office:
Sanathana Dharma Parirakshana Trust
IInd Floor, H.№362, 11th Cross, 4th Main,
2nd Block, Behind B.D.A. Shopping Complex,
R.T. Nagar, Bengaluru — 560 032.
E : dharmadhikari@vedicagraharam.com
Site Address:
Shankara Agraharam — The Vedic Village
Hampasandra Village,
Gudibande Taluk,
Chikballapur District,
Karnataka.
Points to observe
- The cumulative maintenance they have asked is about 90,000Rs. (6 * 9000 + 36000)
- At the time of land registration they had collected almost Rs1 Lac for trust by intimidation, apart from land price. Which we don’t know how they spent.
- They refused to give audit report of how they are using the funds
- Note the govt valuation of land in that area is also about Rs 2,00,000. The maintenance they are asking is almost 50% of govt valuation of site value.
- This is a trust. This is not a association formed by members. This is not registered in MCA as association
- The trustees of trust have decided on their own, how much they have to charge people in that area
- As required in consumer law, they have not given a chance for consumer to decide if they want maintenance or not.
The economy is so bad. People are having hard time getting salaries. The trustees on their own whim and fancy, have decided how much to charge and issuing threat emails.
Section-10 of Indian contract act tells the following
10. What agreements are contracts
All agreements are contracts if they are made by the free consent of parties
competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. Nothing herein contained shall affect any law in force in India, and not hereby expressly repealed, by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents.
Consumer law protects the following
The Right to Basic Needs. …
The Right to Safety. …
The Right to Information. …
The Right to Choose. …
The Right to Representation. …
The Right to Redress. …
The Right to Consumer Education. …
The Right to a Healthy Environment.
Violations
- This trust has not entered into a contract as required in section-10 of indian contract act.
- It has not provided a chance for consumer to choose as required by consumer law
- The association is not formed by members to decide on maintenance by them. Neither the association is registered any where.
Being a trust, it can be seen in below, they don’t have to file annual taxes, annual returns.
The money collected can be used for personal benefits of trustees. The trust acts as an umbrella for blackmoney, money laundering, personal gains of trustees.
Extortion case
The board of trustees are issuing a threat that they will not give possession certificate without paying “some amount”.
The said amount is not being asked as donation. It is asked by giving threat to members.
A trust can ask/request donation. But cannot issue threat for their own “perceived activities”.
Neither the trust following consumer law, nor contract law.
Hence this is eligible to be treated as Extortion case under Indian IPC 383.
Commercial interest and Trust
This trust also has commercial interest of layout making, house building.
In order to ensure more commercial activity the trust is being used to issue threat letters.
Saying “If you don’t build house quickly you have to pay penalty” (so that they get commercial profit),.
This trust being a source of Blackmoney, does not have right to force “execution of commercial contracts” in Indian contract law.
This act, requires cancellation of “Trust registration” and also freezing the Bank accounts of Trust, until verifying how the money is spent by “Board of trustees”.
Other possible items to understand
GST — they might not be paying GST for services provided
Extortion money so taken may be frozen for recovery
RERA laws
Important points addressed in attached document
Q 15 Can anybody other than member of Society inspect records of the Society and get copy of it ? Ans Yes, since records of the Society are deemed to be public records. Under section 24 any person can get copy and produce as evidence.
Q 16 Can Registrar enquire into the affairs of a Society? If so on what account and occasion? Ans Under section 25 of the Act, Registrar may make suo moto enquiry or on application by 2/3 of the executive committee members or 1/3 of total members. Such inquiries are held with reference to constitution, working or financial condition of the Society. The Registrar himself or any person appointed by him may hold inquiry.
Q 17 Can Registrar take action to recover the loss/misappropriation made by the members? Is there appeal against such action? Ans Registrar can pass order to recover such loss or damage caused by members after giving opportunity to explain.
Q 18 Can registered societies be cancelled? Who can cancel? Is there provision for appeal? Ans Yes. If a society is engaged in illegal activity, Registrar may enquire under Section 25 and cancel under Sec.27 after giving notice about such cancellation. Dissolution held as per Sec.22. Appeal may be preferred within 60 days from the date of order.
Q 19 Can an administrator be appointed to manage affairs of an Association? What is the procedure? Ans If a society is unable to function and executive committee is unable to hold general body meeting or if there are serious allegations against the governing body, administrator can be appointed by the Government on recommendation by the Registrar. Q 20
References
IPC sections
Indian contract act
Consumer law
Know valuation of your land
Valuation in that area
