• Its a question about cheating

Hello, I think may of them know about the issues about fine India Ltd, My brother was an intermediater for this company He making the financial for that company so he collected the money from public for invest he also invest in that company. The company cheated the invested amount. Is my brother liable for cheating made by that company? Could u advise me please..
Asked 2 years ago in Civil Law from Coimbatore, Tamil Nadu
Hi, in what capacity your brother has collected the amount or is there any agreement entering between your brother and company........if there is any agreement then your brother is not liable.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
i think he is simply a agent who has collected money from investor for investing in the company and he himself invested in the company.no your brother  is not liable for cheating.obviously since your brother is involved in between he will also be made party to it.more over if some other facts are there kindly let me know
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0
if as agent he made it clear to prospective investors that money collected is going to the company for investment purposes he cannot be held personally liable for wrong doings by company
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
5.0 on 5.0
thanks for your appreciation . it appears your brother guided many persons where to invest the money . it is not his fault that company failed . after all he lost his money too . he will also get settlement amount given by company to other affected individuals
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
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If your brother collected amount from public at large as the agent of company and remitted the same to company for investment then he is not liable for the felony of cheating. As an agent his job was confined to collecting the amount. How the money was invested later on by the company was not within the province of control of your brother. Consequently he cannot be made liable under the law for cheating as he held no managerial post in the company.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
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Your brother also lost the money invested by him in this company. So he has every right to claim it in the same manner as all other investors do. He is not liable for any offence committed by company as the money was remitted to company, and not diverted to his personal account.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
5.0 on 5.0
Since the matter is already settled, no further comment is required.
Fateh Chand Sharma
Advocate, Noida
86 Answers
1 Consultations
4.7 on 5.0
when the amount has been already settled by your brother to all the affected investors,then there will be no complainant
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0

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