The Chit Funds Act, 1982

90 sections.

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

Lexace India is a legal-information & technology platform — not a law firm. It does not advertise, solicit work, or provide legal advice, and no advocate–client relationship is created. Bare-act text for general information; verify against the official source.