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The Chits Funds Act,1982

The Chits Funds Act,1982




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

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