Full text containing the act, Chit Funds Act, , with all the sections, schedules, short title, enactment date, and footnotes. A chit fund is a type of rotating savings and credit association system practiced in India. According to Section 2(b) of the Chit Funds Act, “Chit means a. 28 Feb BILL further to amend the Chit Funds Act, BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:—. 1.
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Alteration of chit agreement. Advisory role of Reserve Bank.
Bill to amend Chit Funds Act introduced in Lok Sabha
Each month, chit funds act 1982 subscribers put in their monthly installments into the pot. Register now for your free, tailored, daily legal newsfeed service. Nowadays, such special purpose chits are conducted by jewellery shops, kitchenware shops, etc.
Applicability of the Act As per Section 85 2 of the Act, the provisions of the Act do not apply to any chit the amount of which, or where two or more chits were started or conducted simultaneously by the same foreman, the aggregate amount of which does not exceed INR Provided that if any such dispute is on a promissory note, no order shall be passed under this sub-section unless such promissory note expressly states that the chit funds act 1982 due under the promissory note is towards the payment of subscriptions to the chit.
Date, time and place of conducting chits. Chit business will be required to use the term “Fraternity Fund” to signify its nature as well as to differentiate its working from ” Prize Chits ” which are banned under a separate legislation. According chit funds act 1982 All Kerala Kuri Foremen’s Association, Kerala has around 5, chit companies, with Thrissur district accounting for the maximum of 3, Copy of assent or consent to be filed with Registrar.
Proposed Amendments in the Chit Fund Act, 1982
Copies of minutes to be filed with Registrar. Attachment before judgment and other interlocutory chit funds act 1982. Both organizers and subscribers in chit funds are exposed to credit risk because subscribers might default on their periodic payments. According to Section 2 b of the Chit Funds Act, Restrictions on transfer of rights of foreman.
Meetings of general body of subscribers. Provided that where a balance-sheet is audited by an auditor qualified to act as chit funds act 1982 under the Companies Act, 1 ofa chit auditor appointed under section 61 shall have the right to audit the balance-sheet at any time if so authorised by the Registrar in this behalf. Will be displayed Will not be displayed Will be displayed.
Prohibition of invitation for subscription except under certain conditions. To view all formatting for this article eg, tables, footnotesplease access chit funds act 1982 original here. Security to be given by foreman.
Provided that no application for the winding-up of a chit under cbit d or clause i of fundx 48 shall lie unless such application is presented,— a by non-prized and unpaid prized subscribers representing not chit funds act 1982 than twenty-five per cent.
Explanation—For the purposes of this sub-section, a dispute touching the management of a chit business shall include,— i a claim by or against a foreman for any debt or demand due to him from a subscriber, or due from him to a subscriber, past subscriber or the nominee, heir or legal representative of a deceased subscriber whether such debt or demand is admitted or not. This site uses Akismet to reduce spam. Views Read Edit View history.
Chit funds to be called as Fraternity funds.. | Mostly Economics
Disputes relating to chit business. Provided that the State Government may, if it considers it qct chit funds act 1982 the public interest or for avoiding any hardship, extend the said period of one year by such further period or chit funds act 1982 not exceeding one year in the aggregate. Provided that a sanction obtained under this sub-section shall lapse if the chit is not registered within twelve months from the date of such sanction or within such further period or periods not exceeding six months in the aggregate as the State Government may, on application made to it in this behalf, allow.
Notification of winding up order. Recognition of transfer by foreman.
These chit companies provide employment to about 35, persons directly and an equal number indirectly. The Bill proposes that such limit may be prescribed by the State governments and may be increased from to time. The Bill proposes that the required subscribers may join through video conferencing. chit funds act 1982
The concept of chit funds entered public consciousness in the 19th century when Raja Rama Varma, ruler of erstwhile Cochin state gave a loan to a Syrian Christian trader, by keeping a certain portion of sct to himself chit funds act 1982 other expenses and later he drew that money for the principle of equity.
Aggregate amount of chits.