Legality of sale by lucky draw in India


A JEWELRY SHOP OWNER FORMS A GROUP COMPRISING OF 100 CUSTOMERS.THESE CUSTOMERS CONTRIBUTE RS 2000/-PER MONTH.BY LUCKY DREW,ONE CUSTOMER GETS GOLD ORNAMENTS EVERY MONTH.THIS PROCESS CONTINUE TILL EACH MEMBER GETS THE ORNAMENTS .WHETHER THIS PRACTICE IS LEGAL OR BANNED UNDER THE PRESENT LAW IN INDIA.


Answers (1)

Hi,
The scheme as quoted by you does not attract the penal privisions of "Prize Chits and Money Circulation Schemes (Banning) Act, 1978" or any other act. As in this situation every customer will get the ornaments, but the draw will only decide that who will get the same first. this scheme amount to selling of ornaments on easy EMI with predeposit of price or postdeposit of price, which is not punishable in India.


Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Criminal Lawyers

Advocate Harish Malhotra
District Court, Gurgaon
22 years Experience
Advocate Shikhar Khare
Jangpura Extension, Delhi
6 years Experience
Advocate Prashant Mendiratta
Lajpat Nagar 4, Delhi
26 years Experience
Advocate Jaspreet Singh Rai
Greater Kailash 1, Delhi
16 years Experience

"LawRato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Criminal Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.

Similar questions

Want to file petition in high court against police for filing 498aFIR under wrong jurisdiction and harassing me and my family members.Please help me …

Read More

I applied for a top class scholarship scheme during my PGDM course last year.One of the criteria for granting scholarship was that the family income s…

Read More

My family live at a village in Agra while I am a resident of Delhi. My sister has told me that our neighbor in village is stalking her for past few da…

Read More

If an acid attack victim wants to claim compensation under Section 357, CrPc, how will the respondent rebut this claim?…

Read More

Talk to a lawyer for your legal issue