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The Chit Funds Act, 1982

Central

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

Act number
40 of 1982
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
19 Aug 1982

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

90 sections

  1. Section 1Short title, extent and commencement.
  2. Section 2Definitions.
  3. Section 3Act to override other laws, memorandum, articles, etc.
  4. Section 4Prohibition of chits not sanctioned or registered under the Act.
  5. Section 5Prohibition of invitation for subscriptions except under certain conditions.
  6. Section 6Form of chit agreement.
  7. Section 7Filing of chit agreement.
  8. Section 8Minimum capital requirements for the commencement, etc., of a chit, and creation of a reserve fund, by a company.
  9. Section 9Commencement of chit.
  10. Section 10Copies of chit agreement to be given to subscribers.
  11. Section 11Use of words "chit", "chit fund", "chitty", "kuri", "fraternity fund", or "Rotating Savings and Credit Institution".
  12. Section 12Prohibition of transacting business other than chit business by a company.
  13. Section 13Aggregate amount of chits.
  14. Section 14Utilisation of funds.
  15. Section 15Alteration of chit agreement.
  16. Section 16Date, time and place of conducting chits.
  17. Section 17Minutes of proceedings.
  18. Section 18Copies of minutes to be filed with Registrar.
  19. Section 19Restriction on opening of new place of business.
  20. Section 20Security to be given by foreman.
  21. Section 21Rights of foreman.
  22. Section 22Duties of foreman.
  23. Section 23Books, records, etc., to be kept by foreman.
  24. Section 24Balance sheet.
  25. Section 25Liability of foreman to subscribers.
  26. Section 26Withdrawal of foreman.
  27. Section 27Non-prized subscribers to pay subscriptions and obtain receipts.
  28. Section 28Removal of defaulting subscribers.
  29. Section 29Substitution of subscribers.
  30. Section 30Amounts due to defaulting subscribers.
  31. Section 31Prized subscriber to furnish security.
  32. Section 32Prized subscriber to pay subscriptions regularly.
  33. Section 33Foreman to demand future subscriptions by written notice.
  34. Section 34Restrictions on transfer of rights of foreman.
  35. Section 35Transfer of non-prized subscriber's rights to be in writing.
  36. Section 36Recognition of transfer by foreman.
  37. Section 37Entry of transferee's name in the books.
  38. Section 38Meetings of general body of subscribers.
  39. Section 39Provision for continuation of chits in certain cases.
  40. Section 40Termination of chits.
  41. Section 41Copy of assent or consent to be filed with Registrar.
  42. Section 42Refund of non-prized subscribers' subscriptions.
  43. Section 43Subscribers' dues to be first charge on chit assets.
  44. Section 44Foreman to allow certain subscribers to inspect chit records.
  45. Section 45Preservation of chit records by foreman.
  46. Section 46Inspection of chit books and records by Registrar.
  47. Section 47Power of Reserve Bank to inspect chit books and records.
  48. Section 48Circumstances under which chits may be wound up.
  49. Section 49Application for winding up.
  50. Section 50Bar to winding up proceedings.
  51. Section 51Commencement and effect of winding up order.
  52. Section 52Injunction order.
  53. Section 53Powers of Registrar.
  54. Section 54Vesting of chit assets in Registrar or other persons.
  55. Section 55Suits, etc., to be stayed on winding up order.
  56. Section 56Notification of winding up order.
  57. Section 57Cessation of winding up proceedings on insolvency of foreman, etc., or the winding up of the company and transfer of such proceedings.
  58. Section 58Award of compensation to foreman.
  59. Section 59Right to appeal.
  60. Section 60Limitation.
  61. Section 61Appointment of Registrar and other officers.
  62. Section 62Inspection of documents in Registrar's office.
  63. Section 63Levy of fees.
  64. Section 64Disputes relating to chit business.
  65. Section 65Period of limitation.
  66. Section 66Settlement of disputes.
  67. Section 67Procedure for settlement of disputes and powers of Registrar or nominee.
  68. Section 68Attachment before judgment and other interlocutory orders.
  69. Section 69Decision of Registrar or nominee.
  70. Section 70Appeal against decision of Registrar or nominee.
  71. Section 71Money how recovered.
  72. Section 72Private transfer of property made after issue of certificate void against foreman.
  73. Section 73Advisory role of Reserve Bank.
  74. Section 74Appeals.
  75. Section 75Powers of Registrar to give extension of time for filing documents.
  76. Section 76Penalties.
  77. Section 77Penalty for second and subsequent convictions.
  78. Section 78Application of fine.
  79. Section 79Offences by companies.
  80. Section 80Cognizance of offences.
  81. Section 81Power to compound offences.
  82. Section 82Power to enter and search any place and to seize any documents.
  83. Section 83Officers to be public servants.
  84. Section 84Power to delegate.
  85. Section 85Act not to apply to certain chits.
  86. Section 86Banks not to conduct chit business.
  87. Section 87Power to exempt.
  88. Section 88Protection of action taken under the Act.
  89. Section 89Power to make rules.
  90. Section 90Repeal and saving.