Aggregate amount of chits
Section 13 of the Chit Funds Act, 1982 deals with aggregate amount of chits. No foreman, other than a firm or other association of individuals or a company or co-operative society, shall commence or conduct chits, the aggregate [gross chit amount] of which at any time exceeds [rupees three lakh]. The Act came into force on 02 Apr 1984.
(1) No foreman, other than a firm or other association of individuals or a company or co-operative society, shall commence or conduct chits, the aggregate 1[gross chit amount] of which at any time exceeds 2[rupees three lakh].
(2) Where the foreman is a firm or other association of individuals, the aggregate 1[gross chit amount] of the chits conducted by the firm or other association shall not at any time exceed,--
(a) where the number of partners of the firm or the individuals constituting the association is not less than four, a sum of rupees 3[rupees eighteen lakhs];
(b) in any other case, a sum calculated on the basis of 2[rupees three lakh] with respect to each such partner or individual.
(3) Where the foreman is a company or co-operative society, the aggregate 1[gross chit amount] of the chits conducted by it shall not at any time exceed ten times the net owned funds of the company or the co-operative society, as the case may be.
Explanation.-- For the purposes of this sub-section, "net owned funds" shall mean the aggregate of the paid-up capital and free reserves as disclosed in the last audited balance sheet of the company or cooperative society, as reduced by the amount of accumulated balance of loss, deferred revenue, expenditure and other intangible assets, if any, as disclosed in the said balance-sheet.
Section 13, 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 13
What does Section 13 of the Chit Funds Act deal with?
Section 13 of the Chit Funds Act is headed "Aggregate amount of chits". No foreman, other than a firm or other association of individuals or a company or co-operative society, shall commence or conduct chits, the aggregate [gross chit amount] of which at any time exceeds [rupees three lakh].
How do I find court cases under Section 13 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 13, section 13 Chit Funds Act 1982, section 13 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 13 of the Chit Funds Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 13 of the Chit Funds Act come into force?
Section 13 of the Chit Funds Act, cited as Chit Funds Act 1982 13, 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 14 Oct 2026. This page is not a substitute for legal advice.