Bare Acts

The Chit Funds Act, 1982

An Act to provide for the regulation of chit funds and for matters connected therewith.

चिट फंड अधिनियम, 1982

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Act Details

Act Number:

Act Year:

1982

Location:

Enactment Date:

8/19/1982

Enforcement Date:

02-04-1984

Ministry:

Ministry of Finance

Department:

Department of Financial Services

All Section List

PRELIMINARY

Section 1 to Section 3

Section 1

Short title, extent and commencement.

Section 2

Definitions.

Section 3

Act to override other laws, memorandum, articles, etc.

REGISTRATION OF CHITS, COMMENCEMENT AND CONDUCT OF CHIT BUSINESS

Section 4 to Section 19

Section 4

Prohibition of chits not sanctioned or registered under the Act.

Section 5

Prohibition of invitation for subscriptions except under certain conditions.

Section 6

Form of chit agreement.

Section 7

Filing of chit agreement.

Section 8

Minimum capital requirements for the commencement, etc., of a chit, and creation of a reserve fund, by a company.

Section 9

Commencement of chit.

Section 10

Copies of chit agreement to be given to subscribers.

Section 11

Use of words "chit", "chit fund", "chitty", "kuri", "fraternity fund", or "Rotating Savings and Credit Institution".

Section 12

Prohibition of transacting business other than chit business by a company.

Section 13

Aggregate amount of chits.

Section 14

Utilisation of funds.

Section 15

Alteration of chit agreement.

Section 16

Date, time and place of conducting chits.

Section 17

Minutes of proceedings.

Section 18

Copies of minutes to be filed with Registrar.

Section 19

Restriction on opening of new place of business.

RIGHTS AND DUTIES OF FOREMAN

Section 20 to Section 26

Section 20

Security to be given by foreman.

Section 21

Rights of foreman.

Section 22

Duties of foreman.

Section 23

Books, records, etc., to be kept by foreman.

Section 24

Balance sheet.

Section 25

Liability of foreman to subscribers.

Section 26

Withdrawal of foreman.

RIGHTS AND DUTIES OF NON-PRIZED SUBSCRIBERS

Section 27 to Section 30

Section 27

Non-prized subscribers to pay subscriptions and obtain receipts.

Section 28

Removal of defaulting subscribers.

Section 29

Substitution of subscribers.

Section 30

Amounts due to defaulting subscribers.

RIGHTS AND DUTIES OF PRIZED SUBSCRIBERS

Section 31 to Section 33

Section 31

Prized subscriber to furnish security.

Section 32

Prized subscriber to pay subscriptions regularly.

Section 33

Foreman to demand future subscriptions by written notice.

TRANSFERS

Section 34 to Section 37

Section 34

Restrictions on transfer of rights of foreman.

Section 35

Transfer of non-prized subscriber's rights to be in writing.

Section 36

Recognition of transfer by foreman.

Section 37

Entry of transferee's name in the books.

MEETINGS OF GENERAL BODY OF SUBSCRIBERS

Section 38

Meetings of general body of subscribers.

TERMINATION OF CHITS

Section 39 to Section 43

Section 39

Provision for continuation of chits in certain cases.

Section 40

Termination of chits.

Section 41

Copy of assent or consent to be filed with Registrar.

Section 42

Refund of non-prized subscribers' subscriptions.

Section 43

Subscribers' dues to be first charge on chit assets.

INSPECTION OF DOCUMENTS

Section 44 to Section 47

Section 44

Foreman to allow certain subscribers to inspect chit records.

Section 45

Preservation of chit records by foreman.

Section 46

Inspection of chit books and records by Registrar.

Section 47

Power of Reserve Bank to inspect chit books and records.

WINDING UP OF CHITS

Section 48 to Section 60

Section 48

Circumstances under which chits may be wound up.

Section 49

Application for winding up.

Section 50

Bar to winding up proceedings.

Section 51

Commencement and effect of winding up order.

Section 52

Injunction order.

Section 53

Powers of Registrar.

Section 54

Vesting of chit assets in Registrar or other persons.

Section 55

Suits, etc., to be stayed on winding up order.

Section 56

Notification of winding up order.

Section 57

Cessation of winding up proceedings on insolvency of foreman, etc., or the winding up of the company and transfer of such proceedings.

Section 58

Award of compensation to foreman.

Section 59

Right to appeal.

Section 60

Limitation.

APPOINTMENT OF OFFICERS AND LEVY OF FEES

Section 61 to Section 63

Section 61

Appointment of Registrar and other officers.

Section 62

Inspection of documents in Registrar's office.

Section 63

Levy of fees.

DISPUTES AND ARBITRATION

Section 64 to Section 72

Section 64

Disputes relating to chit business.

Section 65

Period of limitation.

Section 66

Settlement of disputes.

Section 67

Procedure for settlement of disputes and powers of Registrar or nominee.

Section 68

Attachment before judgment and other interlocutory orders.

Section 69

Decision of Registrar or nominee.

Section 70

Appeal against decision of Registrar or nominee.

Section 71

Money how recovered.

Section 72

Private transfer of property made after issue of certificate void against foreman.

MISCELLANEOUS

Section 73 to Section 90

Section 73

Advisory role of Reserve Bank.

Section 74

Appeals.

Section 75

Powers of Registrar to give extension of time for filing documents.

Section 76

Penalties.

Section 77

Penalty for second and subsequent convictions.

Section 78

Application of fine.

Section 79

Offences by companies.

Section 80

Cognizance of offences.

Section 81

Power to compound offences.

Section 82

Power to enter and search any place and to seize any documents.

Section 83

Officers to be public servants.

Section 84

Power to delegate.

Section 85

Act not to apply to certain chits.

Section 86

Banks not to conduct chit business.

Section 87

Power to exempt.

Section 88

Protection of action taken under the Act.

Section 89

Power to make rules.

Section 90

Repeal and saving.