(1) No foreman, other than a firm or other association of individuals or a company or co-operative society, shall commence or conduct chits, the aggregate 1[gross chit amount] of which at any time exceeds 2[rupees three lakh].
(2) Where the foreman is a firm or other association of individuals, the aggregate 1[gross chit amount] of the chits conducted by the firm or other association shall not at any time exceed,--
(a) where the number of partners of the firm or the individuals constituting the association is not less than four, a sum of rupees 3[rupees eighteen lakhs];
(b) in any other case, a sum calculated on the basis of 2[rupees three lakh] with respect to each such partner or individual.
(3) Where the foreman is a company or co-operative society, the aggregate 1[gross chit amount] of the chits conducted by it shall not at any time exceed ten times the net owned funds of the company or the co-operative society, as the case may be.
Explanation.-- For the purposes of this sub-section, "net owned funds" shall mean the aggregate of the paid-up capital and free reserves as disclosed in the last audited balance sheet of the company or cooperative society, as reduced by the amount of accumulated balance of loss, deferred revenue, expenditure and other intangible assets, if any, as disclosed in the said balance-sheet.
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1. Subs. by Act 41 of 2019, s. 3,
for "chit amount" (w.e.f. 1-1-2020).
2. Subs. by s. 5, ibid., "rupees one lakh" (w.e.f. 01-10-2020).
3. Subs. by s. 5, ibid., for, "rupees six lakhs" (w.e.f. 01-01-2020).
Section 13 of Chit Funds Act - Aggregate amount of chits
Section 14 of Chit Funds Act - Utilisation of funds
Section 15 of Chit Funds Act - Alteration of chit agreement
Section 16 of Chit Funds Act - Date, time and place of conducting chits
Section 17 of Chit Funds Act - Minutes of proceedings
Section 18 of Chit Funds Act - Copies of minutes to be filed with Registrar
Section 19 of Chit Funds Act - Restriction on opening of new place of business
Section 20 of Chit Funds Act - Security to be given by foreman