GST Amnesty Scheme 0
May 15, 2025
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Under the Act - Chit Fund Act

Sr No Section Subject
1 1 Short title, extent and commencement
2 2 Definitions
3 3 Act to override other laws, memorandum, articles, etc.—
4 4 Prohibition of chits not sanctioned or registered under the Act.
5 5 Prohibition of invitation for subscriptions except under certain conditions.
6 6 Form of chit agreement.
7 7 Filing of chit agreement.
8 8 Minimum capital requirements for the commencement, etc., of a chit, and creation of a reserve fund, by a company.
9 9 Commencement of chit.
10 10 Copies of chit agreement to be given to subscribers.
11 11 Use of the words “chit”, “chit fund”, “chitty” or “kuri”.
12 12 Prohibition of transacting business other than chit business by a company.
13 13 Aggregate amount of chits.
14 14 Utilization of funds.
15 15 Alteration of chit agreement
16 16 Date, time and place of conducting chits.
17 17 Minutes of proceedings.
18 18 Copies of minutes to be filed with Registrar.
19 19 Restriction on opening of new place of business.
20 20 Security to be given by foreman.
21 21 Rights of foreman.
22 22 Duties of foreman.
23 23 Books, records, etc., to be kept by foreman.
24 24 Balance-sheet
25 25 Liability of foreman to subscribers.
26 26 Withdrawal of foreman.
27 27 Non-prized subscribers to pay subscriptions and obtain receipts.
28 28 Removal of defaulting subscribers.
29 29 Substitution of subscribers.
30 30 Amounts due to defaulting subscribers.
31 31 Prized subscriber to furnish security.
32 32 Prized subscriber to pay subscriptions regularly.
33 33 Foreman to demand future subscriptions by written notice.
34 34 Restrictions on transfer of rights of foreman.
35 35 Transfer of non-prized subscriber’s right to be in writing.
36 36 Recognition of transfer by foreman.
37 37 Entry of transfer.
38 38 Meetings of general body of subscribers.
39 39 Provision for continuation of chits in certain cases.
40 40 Termination of chits.
41 41 Copy of assent or consent to be filed with Registrar
42 42 Refund of non-prized subscribers’ subscriptions.
43 43 Subscribers’ dues to be first charge on chit assets.
44 44 Foreman to allow certain subscribers to inspect chit records.
45 45 Preservation of chit records by foreman.
46 46 Inspection of chit books and records by Registrar.
47 47 Power of Reserve Bank to inspect chit books and records.
48 48 Circumstances under which chits may be wound up.
49 49 Application for winding up.
50 50 Bar to winding up proceedings.
51 51 Commencement and effect of winding up order.
52 52 Injunction order.
53 53 Powers of Registrar.
54 54 Vesting of chit assets in Registrar or other person.
55 55 Suits, etc., to be stayed on winding up order.
56 56 Notification of winding up order.
57 57 Cessation of winding up proceedings on insolvency of foreman, etc., or the winding up of the company and transfer of such proceedings.
58 58 Award of compensation to foreman.
59 59 Right to appeal.
60 60 Limitation.
61 61 Appointment of Registrar and other officers.
62 62 Inspection of documents in Registrar’s Office.
63 63 Levy of fees.
64 64 Disputes relating to chit business.
65 65 Period of limitation.
66 66 Settlement of disputes.
67 67 Procedure for settlement of disputes and powers of Registrar or nominee.
68 68 Attachment before judgment and other interlocutory orders.
69 69 Decision of Registrar or nominee.
70 70 Appeal against decision of Registrar or nominee.
71 71 Money how recovered.
72 72 Private transfer of property made after issue of certificate void against foreman.
73 73 Advisory role of Reserve Bank.
74 74 Appeal.
75 75 Powers of Registrar to give extension of time for filing documents.
76 76 Penalties.
77 77 Penalty for second and subsequent convictions.
78 78 Application of fine.
79 79 Offences by companies.
80 80 Cognizance of offences.
81 81 Power to compound offences.
82 82 Power to enter and search any place and to seize any documents.
83 83 Officers to be public servants.
84 84 Power to delegate.
85 85 Act not to apply to certain chits.
86 86 Banks not to conduct chit business.
87 87 Power to exempt.
88 88 Protection of action taken under the Act.
89 89 Power to make rules.
90 90 Repeal and saving.