Growpital Agricultural investment

[navam]

Honestly, it is not feasible to provide explanations here. You will need to consult your lawyers for this.

On a generic note, I can say that there is absolutely no structure or recourse for the investors on how the LLP shall function. Why would someone give away such rights? The closest structure I can think of is the Debenture Trust Deeds executed while issuing NCDs. You can google them. I have attached a random one that I came across. You will yourself be able to make out all sorts of covenants that will typically be required to manage investments from public.

This brings me to the next one... they are raising capital from public. They don't seem to have any registrations with either SEBI or RBI.

Oh, and you sign the LLP agreement! This has its own set of compliance headaches. Who ensures compliance? Do you get indemnity? You designate someone else as the authorised signatory. Is this limited authorisation? Where is this documented?

How are meetings conducted? How are investors represented?

There is no personal liability of the Designated Partners here by design. There are no representations or warranties. Big red flags. (Who negotiated this?)

There could be a hundred more questions. Obviously, I do not have all the information so may be not all of them are relevant. You be the judge of that. But if it was me I would never sign their clause 3.3 where you provide perpetual rights on using your name in any manner whatsoever without prior consent. (I have picked the least troublesome clause as an example)


https://www.bseindia.com/corporates/download/316577/PPDI_Prior/NCD DTD 11th Aug 2021_20210816172742.pdf

Hats off to you sir, I am incapable of responding to any of your concerns, which makes me glad I checked with people here before moving some money into this
With that said the more I dig deeper into how they operate the more I feel like it's a loophole which they are using and who knows when it will be plugged or worse investigated dragging people along.

PS: whoever comes looking for growpital to this forum, please bring up some of these questions that @j_s has mentioned with them and ideally have a lawyer who understand this stuff read the agreement before you sign anything.

 

[theglobalinvestor]

Also, please note that agri income is not really 100% tax free if you have other income.

Agricultural Income is exempt from tax under section 10(1) subject to conditions mentioned in the definition clause of section 2(1A) of the Income Tax Act, 1961. However, the Income-tax Act has laid down a method to indirectly tax such income. This method or concept may be called as partial integration of agricultural income with non-agricultural income. The purpose behind this method is to tax non-agricultural income at higher rates of tax.

Read more at: https://taxguru.in/income-tax/parti...ome-non-agricultural-income-higher-rates.html
Copyright © Taxguru.in

 

[Jack007]

Also, please note that agri income is not really 100% tax free if you have other income.

You should understand the scenario before sharing it. Growpital works as a LLP and the article you shared is not applicable on them. Its written in the article as well. P.S. Just sharing information, not invested in anything

 

[theglobalinvestor]

You should understand the scenario before sharing it. Growpital works as a LLP and the article you shared is not applicable on them. Its written in the article as well. P.S. Just sharing information, not invested in anything

The article is not applicable on them as an LLP with only agricultural income. The article is applicable on you/investors investing in growpitals LLPs and having other income like salary, business income, etc. Sharing from experience as an investor in growpital.

 

[Jack007]

The article is not applicable on them as an LLP with only agricultural income. The article is applicable on you/investors investing in growpitals LLPs and having other income like salary, business income, etc. Sharing from experience as an investor in growpital.

The agricultural income is exempt for LLP. The share of profit is exempt for the partners of LLP. So can you explain from your experience how is the above article applicable in anyway?

 

[theglobalinvestor]

The agricultural income is exempt for LLP. The share of profit is exempt for the partners of LLP. So can you explain from your experience how is the above article applicable in anyway?

I was just sharing what I got from my auditor regarding agri income. If it's purely share of profits it may be exempt. But could be a gray area/loophole waiting to be closed and could invite an audit/ the wrath of the AO.

 

[rdargar]

The lock-in period pretty high in growcapital. Although you tax liability become 0.

Actually no . If your other sources of income accumulate for 2.5L+ than the agriculture income is taxed in a indirect way.
What I mean is it is calculated separately and the benifit of 2.5L basic exemption is only applicable in 1 calculation category. Hard to explain in words but yes it is not 100% tax free

 

[iamdhamo]

Bumping this up, thinking of investing a bit into this agriculture Linked stuff
Curious if filing itr3 is a pain for CA's

Ca's ask more for itr3 than itr1

 

[j_s]

Came across this today. Anyone who is invested in any manner is stuck now.


Link to SEBI's interim order SEBI Interim Order

 

[Walter White]

Came across this today. Anyone who is invested in any manner is stuck now.


Link to SEBI's interim order SEBI Interim Order

Moye moye ho gaya inka

 

[navam]

Bach Gaye, accha hua had the discussion on this forum.

 

[krishc]

thankfully waited long enough for due diligence and didn't invest yet as wasn't convinced with their modus operandi

 

[iamdhamo]

Anybody invested in growpital? I had invested and money is stuck cos sebi froze their accounts and not able to get latest update.

 

[theglobalinvestor]

Anybody invested in growpital? I had invested and money is stuck cos sebi froze their accounts and not able to get latest update.

I had put in ₹1L to test.

 

[iamdhamo]

I had put in ₹1L to test.

What's ur view after sebi freezed their escrow accounts and looks like business might be shut down cos of this freeze

 

[theglobalinvestor]

What's ur view after sebi freezed their escrow accounts and looks like business might be shut down cos of this freeze

Meh... I haven't really considered it. Will wait and see. They've been sending emails and holding webinars and things if you want to follow the details. I haven't bothered. Will see what happens after the dust settles.

 

[iamdhamo]

Meh... I haven't really considered it. Will wait and see. They've been sending emails and holding webinars and things if you want to follow the details. I haven't bothered. Will see what happens after the dust settles.

When you had invested 1L with this platform

 

[theglobalinvestor]

When you had invested 1L with this platform

Don't remember. Let me check. I only got 1 or 2 payouts so far.

Here you go...

 

[iamdhamo]

Don't remember. Let me check. I only got 1 or 2 payouts so far.

Here you go...

By looking at the way things are progressing I think money will be held by sebi instead of unfreeze. What do you think ?

 

[Deleted member 9785]

for taking risk there are only 2 asset classes - Equity or RE

You are a fool to invest for high returns anywehre else