ACT NO. 40 OF 1982
[19th August, 1982.]
An Act to provide for the regulation of chit funds and for matters connected therewith.
BE it enacted by Parliament in the Thirty-third Year of the Republic of India as follows:-
CHAPTER I PRELIMINARY
1. Short title, extent and commencement
(1) This Act may be called the Chit Funds Act, 1982.
(2) It extends to the whole of India 1 ***.
(3) It shall come into force on such date 2 as the Central Government may, by
notification in the
Official Gazette, appoint, and different dates may be appointed for different
States.
Section 3 Act to override other laws, memorandum, articles, etc
CHAPTER II REGISTRATION OF CHITS, COMMENCEMENT AND CONDUCT OF CHIT BUSINESS
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 9 Commencement of chit
Section 10 Copies of chit agreement to be given to subscribers
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
CHAPTER III RIGHTS AND DUTIES OF FOREMAN
Section 20 Security to be given by foreman
Section 23 Books, records, etc., to be kept by foreman
Section 25 Liability of foreman to subscribers
Section 26 Withdrawal of foreman
CHAPTER IV RIGHTS AND DUTIES OF NON-PRIZED SUBSCRIBERS
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
CHAPTER V RIGHTS AND DUTIES OF PRIZED 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
CHAPTER VI TRANSFERS
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
CHAPTER VII MEETINGS OF GENERAL BODY OF SUBSCRIBERS
Section 38 Meetings of general body of subscribers
CHAPTER VIII TERMINATION OF CHITS
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
CHAPTER IX INSPECTION OF DOCUMENTS
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
CHAPTER X WINDING UP OF CHITS
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 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 58 Award of compensation to foreman
CHAPTER XI APPOINTMENT OF OFFICERS AND LEVY OF FEES
Section 61 Appointment of Registrar and other officers
Section 62 Inspection of documents in Registrar's office
CHAPTER XII DISPUTES AND ARBITRATION
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
CHAPTER XIII MISCELLANEOUS
Section 73 Advisory role of Reserve Bank
Section 75 Powers of Registrar to give extension of time for filing documents
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 85 Act not to apply to certain chits
Section 86 Banks not to conduct chit business
Section 88 Protection of action taken under the Act
Section 89 Power to make rules