Prohibition of transacting business other than chit business by a company
Section 12 of the Chit Funds Act, 1982 deals with prohibition of transacting business other than chit business by a company. Except with the general or special permission of the State Government, no company carrying on chit business shall conduct any other business. The Act came into force on 02 Apr 1984.
(1) Except with the general or special permission of the State Government, no company carrying on chit business shall conduct any other business.
(2) Where at the commencement of this Act, any company is carrying on any business in addition to chit business, it shall wind up such other business before the expiry of a period of three years from such commencement:
Provided that the State Government may, if it considers it necessary in the public interest or for avoiding any hardship, extend the said period of three years by such further period or periods not exceeding two years in the aggregate.
Section 12, The Chit Funds Act, 1982 (Act 40 of 1982).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 1
Questions about Section 12
What does Section 12 of the Chit Funds Act deal with?
Section 12 of the Chit Funds Act is headed "Prohibition of transacting business other than chit business by a company". Except with the general or special permission of the State Government, no company carrying on chit business shall conduct any other business.
How do I find court cases under Section 12 of the Chit Funds Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Chit Funds Act 1982 12, section 12 Chit Funds Act 1982, section 12 of the Chit Funds Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 12 of the Chit Funds Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 12 of the Chit Funds Act come into force?
Section 12 of the Chit Funds Act, cited as Chit Funds Act 1982 12, came into force on 02 Apr 1984, having been enacted on 19 Aug 1982. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions795 words
- 6. Form of chit agreement577 words
- 22. Duties of foreman483 words
- 89. Power to make rules471 words
- 20. Security to be given by foreman428 words
- 67. Procedure for settlement of disputes and powers of Registrar or nominee419 words
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. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.