Advocate OS
Start free

In force

The Chit Funds Act, 1982

90 sections · As amended up to 2026-08

Sections

  1. 0Section 0
  2. I — PRELIMINARY
  3. 1Short title, extent and commencement
  4. 2Definitions
  5. III — RIGHTS AND DUTIES OF FOREMAN
  6. 3The word "and" omitted by s. 8, ibid. (w.e.f. 1-1-2020)
  7. II — REGISTRATION OF CHITS, COMMENCEMENT AND CONDUCT OF CHIT BUSINESS
  8. 4Prohibition of chits not sanctioned or registered under the Act
  9. 5Prohibition of invitation for subscriptions except under certain conditions
  10. 6Form of chit agreement
  11. 7Filing of chit agreement
  12. 8Minimum capital requirements for the commencement, etc., of a chit, and creation of a
  13. 9Commencement of chit
  14. 10Copies of chit agreement to be given to subscribers
  15. 12Prohibition of transacting business other than chit business by a company
  16. 13Aggregate amount of chits
  17. 14Utilisation of funds
  18. 15Alteration of chit agreement
  19. 16Date, time and place of conducting chits
  20. 17Minutes of proceedings
  21. 18Copies of minutes to be filed with Registrar
  22. 19Restriction on opening of new place of business
  23. III — RIGHTS AND DUTIES OF FOREMAN
  24. 20Security to be given by foreman
  25. 21Rights of foreman
  26. 22Duties of foreman
  27. 23Books, records, etc., to be kept by foreman
  28. 24Balance sheet
  29. 25Liability of foreman to subscribers
  30. 26Withdrawal of foreman
  31. IV — RIGHTS AND DUTIES OF NON-PRIZED SUBSCRIBERS
  32. 27Non-prized subscribers to pay subscriptions and obtain receipts
  33. 28Removal of defaulting subscribers
  34. 29Substitution of subscribers
  35. 30Amounts due to defaulting subscribers
  36. 31Prized subscriber to furnish security
  37. 32Prized subscriber to pay subscriptions regularly
  38. 33Foreman to demand future subscriptions by written notice
  39. VI — TRANSFERS
  40. 34Restrictions on transfer of rights of foreman
  41. 35Transfer of non-prized subscriber's rights to be in writing
  42. 36Recognition of transfer by foreman
  43. 37Entry of transferee's name in the books
  44. 38Meetings of general body of subscribers
  45. VIII — TERMINATION OF CHITS
  46. 39Provision for continuation of chits in certain cases
  47. 40Termination of chits
  48. 41Copy of assent or consent to be filed with Registrar
  49. 42Refund of non-prized subscribers' subscriptions
  50. 43Subscribers' dues to be first charge on chit assets
  51. IX — INSPECTION OF DOCUMENTS
  52. 44Foreman to allow certain subscribers to inspect chit records
  53. 45Preservation of chit records by foreman
  54. 46Inspection of chit books and records by Registrar
  55. 47Power of Reserve Bank to inspect chit books and records
  56. X — WINDING UP OF CHITS
  57. 48Circumstances under which chits may be wound up
  58. 49Application for winding up
  59. 50Bar to winding up proceedings
  60. 51Commencement and effect of winding up order
  61. 52Injunction order
  62. 53Powers of Registrar
  63. 54Vesting of chit assets in Registrar or other persons
  64. 55Suits, etc., to be stayed on winding up order
  65. 56Notification of winding up order
  66. 57Cessation of winding up proceedings on insolvency of foreman, etc., or the winding up of the company and transfer of such proceedings
  67. 58Award of compensation to foreman
  68. 59Right to appeal
  69. 60Limitation
  70. XI — APPOINTMENT OF OFFICERS AND LEVY OF FEES
  71. 61Appointment of Registrar and other officers
  72. 62Inspection of documents in Registrar's office
  73. 63Levy of fees
  74. XII — DISPUTES AND ARBITRATION
  75. 64Disputes relating to chit business
  76. 65Period of limitation
  77. 66Settlement of disputes
  78. 67Procedure for settlement of disputes and powers of Registrar or nominee
  79. 68Attachment before judgment and other interlocutory orders
  80. 69Decision of Registrar or nominee
  81. 70Appeal against decision of Registrar or nominee
  82. 71Money how recovered
  83. 72Private transfer of property made after issue of certificate void against foreman
  84. XIII — MISCELLANEOUS
  85. 73Advisory role of Reserve Bank
  86. 74Appeals
  87. 75Powers of Registrar to give extension of time for filing documents
  88. 76Penalties
  89. 77Penalty for second and subsequent convictions
  90. 78Application of fine
  91. 79Offences by companies
  92. 80Cognizance of offences
  93. 81Power to compound offences
  94. 82Power to enter and search any place and to seize any documents
  95. 83Officers to be public servants
  96. 84Power to delegate
  97. 85Act not to apply to certain chits
  98. 86Banks not to conduct chit business
  99. 87Power to exempt
  100. 88Protection of action taken under the Act
  101. 89Power to make rules
  102. 90Repeal and saving