Sections Particulars
Chapter I Preliminary
1 Short title, extent and commencement
(1)This Act may be called the Chit Funds Act, 1982.(2)I extends to the whole of India except the State of Jammu and Kashmir.(3)It shall come into force on such...
2 Definition
In this Act, unless the context otherwise require, -(a)"approved bank" means the State Bank of India constituted under section 3 of the State Bank of India Act...
3 Act to override other laws, memorandum ,articles ,etc
.-Save as otherwise expressly provided in this Act,-(a)the provisions of this Act shall have effect notwithstanding anything to the contrary contained in any o...
Chapter II Registration Of Chits, Commencement And Conduct Of Chit Business
4 Prohibition of chits not sanctioned or registered under the Act
(1)Not chit shall be commenced or conducted without obtaining the previous sanction of the State Government within whose jurisdiction the chit is to be comme...
5 Prohibition of invitation for subscriptions except under certain conditions
No person shall issue or cause to be issued any notice, circular, prospectus, proposal or other document inviting the public to subscribe for tickets in any ...
6 Form of chit agreement
(1)Every chit agreement shall be is duplicate and shall be signed by each of the subscribers or by any person authorised by him in writing and the foreman an...
7 Filling of chit agreement
(1)Every chit agreement shall be filed in duplicate by the foreman with the Registrar.(2)The Registrar shall retain one copy of the chit agreement and return t...
8 Minimum capital requirements for the commencement, etc., of a chit, and chit, and creation of a reserve fund by a company
(1)Notwithstanding anything contained in the Companies Act, 1956, but subject to the provisions of this Act, a company shall not commence or carry on chit bus...
9 Commencement of chit
(1)Every foreman shall, after all the tickets specified in the chit agreement are fully subscribed, file a declaration to that effect with the Registrar(2)As...
10 Copies of chit agreement to be given to subscribers
- (1)A foreman shall, as soon as may be after he has obtained the certificate of commencement under sub-section (2) of section 9, but not later than the date...
11 Use of the words chit, chit fund, chitty or Kurt
- (1)No person shall carry on chit business unless he uses as part of his name any of the words "chit fund", "chitty" or "Kuri" and no person other than a p...
12 Prohibition of transacting business other than chit business by a company
.- (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 a...
13 Aggregate amount of chits
.- (1)No foreman, other than a firm or other association of individuals of a company or co-operative society, shall commence or conduct chits, the aggregate c...
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