Power to compound offences
Section 81 of the Chit Funds Act, 1982 deals with power to compound offences. Subject to such conditions as may be prescribed, any officer empowered by the State Government in this behalf may, either before or after the institution of criminal proceedings under this Act, accept from the person who has committed or is reasonably suspected to have committed an offence under thi The Act came into force on 02 Apr 1984.
(1) Subject to such conditions as may be prescribed, any officer empowered by the State Government in this behalf may, either before or after the institution of criminal proceedings under this Act, accept from the person who has committed or is reasonably suspected to have committed an offence under this Act, by way of composition of such offence, a sum of money not exceeding such amount as may be prescribed.
(2) Where an offence has been compounded under sub-section (1), the offender, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of such offence.
Section 81, 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
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Muthoot Pappachan Chits (India) Private Limited v. The State of Kerala
Court's Decision & Legal Precedent
s.81 vesting power to compound offences in the empowered State officer; court directed the Inspector General of Registration to consider and dispose of the pending compounding application for alleged unregistered chits (s.4 context) within 60 days after hearing, without deciding merits of compounding eligibility.
On this section: s.81 power to compound offences — competent officer must decide compounding applications in accordance with law.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 81
What have the courts held on Section 81 of the Chit Funds Act?
Muthoot Pappachan Chits (India) Private Limited v. The State of Kerala (03 Apr 2025) is the leading judgment on this section among those set out below: s.81 power to compound offences — competent officer must decide compounding applications in accordance with law.
How do I find court cases under Section 81 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 81, section 81 Chit Funds Act 1982, section 81 of the Chit Funds Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Muthoot Pappachan Chits (India) Private Limited v. The State of Kerala (03 Apr 2025).
What should I read with Section 81 of the Chit Funds Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 81 of the Chit Funds Act come into force?
Section 81 of the Chit Funds Act, cited as Chit Funds Act 1982 81, 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.