Section 76 of the Chit Funds Act, 1982 - Penalties
Section 76 prescribes criminal penalties for specified contraventions of the Chit Funds Act, 1982, certain defaults by a foreman, and wilfully false material statements made in documents required to be filed under the Act.
Updated: 16 September 2026
Section 76 - Penalties
(1) Whoever contravenes or abets the contravention of any of the provisions of sections 4, 5, 8, 9, 11, 12, 13, 14, 19, 20, 22, 24, 30, 31, sub-section (4) of section 33, sections 46, 47 or sub-section (5) of section 61 shall, on conviction, be punishable with imprisonment for a term which may extend to two years or with fine which may extend to five thousand rupees or with both.
(2) Any foreman,--
(a) who fails to file any document required to be filed under this Act within the period specified therefor or within such further time as may be allowed; or
(b) who fails to comply with the requirements of the chit agreement regarding the date, time and place at which the chit is to be drawn or who fails to comply with the requirements of any direction given under sub-section (3) of section 38; or
(c) who contravenes or fails to comply with any other requirement under this Act,
shall, on conviction, be punishable with fine which may extend to three thousand rupees.
(3) Whoever wilfully makes a statement in any document required to be filed under this Act which is false in any material particular shall, on conviction, be punishable with imprisonment for a term which may extend to two years or with fine which may extend to five thousand rupees or with both.
Meaning and scope of Section 76
Section 76 creates three broad categories of punishable conduct. Sub-section (1) applies when a person contravenes, or abets the contravention of, any of the specifically listed provisions of the Act. Liability under this sub-section is therefore tied to the particular statutory duties and prohibitions contained in those provisions.
1. Contravention or abetment of specified provisions
Sub-section (1) covers contravention or abetment relating to sections 4, 5, 8, 9, 11, 12, 13, 14, 19, 20, 22, 24, 30 and 31, section 33(4), sections 46 and 47, and section 61(5). On conviction, the maximum punishment stated in Section 76(1) is imprisonment up to two years, fine up to Rs. 5,000, or both.
2. Defaults by a foreman
Sub-section (2) specifically addresses a foreman. It includes failure to file a document within the prescribed or extended period, failure to follow the chit agreement regarding the date, time and place of the draw, failure to comply with a direction under Section 38(3), and other failures to comply with requirements of the Act. The stated maximum penalty on conviction is a fine up to Rs. 3,000.
3. Wilfully false material statements
Sub-section (3) applies where a person wilfully makes a statement in a document required to be filed under the Act and that statement is false in a material particular. On conviction, the provision permits imprisonment up to two years, fine up to Rs. 5,000, or both.
Section 76 penalty summary
| Provision | Conduct covered | Maximum punishment stated in Section 76 |
|---|---|---|
| Section 76(1) | Contravention or abetment of the specifically listed provisions | Imprisonment up to 2 years, or fine up to Rs. 5,000, or both |
| Section 76(2) | Specified filing, chit-draw, direction or other statutory defaults by a foreman | Fine up to Rs. 3,000 |
| Section 76(3) | Wilfully false statement in a required document on a material particular | Imprisonment up to 2 years, or fine up to Rs. 5,000, or both |
Official resources
For authoritative statutory material and regulatory information, refer to the India Code page for the Chit Funds Act, 1982 and the Department of Financial Services, Ministry of Finance. The applicable State Government or Registrar of Chits may also publish State-specific rules, forms, notifications and compliance procedures.