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Act40
Enacted 1982

The Chit Funds Act, 1982

In force 90 sections Finance

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

Act 40 of 1982 Enacted 19 Aug 1982 In force 02 Apr 1984 Department Department of Financial Services

Administered by. Ministry of Finance, Department of Financial Services · Other Acts of 1982

Preamble

THE CHIT FUNDS ACT, 1982

ACT NO. 40 OF 1982

[19th August, 1982.] An Act to provide for the regulation of chit funds and for matters connected therewith.

BE it enacted by Parliament in the Thirty-third Year of the Republic of India as follows:--

What this Act covers

Summary of The Chit Funds Act, 1982

Key Provisions

1. Registration, Filing, and Operational Provisions

• Chit Agreement and Registration: Similar to the original summary, emphasizing the need for filing in duplicate with the Registrar and the conditions for registration refusal.

• Chit Agreement Specifications: Detailed contents and duration guidelines remain as previously outlined.

2. Foreman's Obligations, Rights, and Liabilities

• Security, Rights, and Duties: As detailed in the original summary, with an emphasis on adherence to specified security provisions and maintenance of detailed records.

• Additional Emphasis: On the foreman's role in winding up procedures (Chapter X) and the implications of the Act's penal sections (Sections 76-81) on their operations.

3. Winding Up, Disputes, and Miscellaneous Provisions

• Winding Up of Chits (Chapter X): Outlines circumstances, application process, and the Registrar's powers during winding up.

• Dispute Resolution (Chapter XII): Highlights the role of the Registrar or nominee in settling disputes and the appeal process.

• Miscellaneous (Chapter XIII): Includes advisory roles, appeal processes, and time extensions for filing documents.

Sections

Type to filter. 90 sections.

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

Schedules

This Act has 1 schedule. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.

Rules made under this Act

1 set of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

  • The Tamil Nadu Chit Funds Rules, 19841984

Related Acts

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 90 sections of this Act has its own page. This page is not a substitute for legal advice.