These chit funds are run by chit fund companies and in the article. Now chit funds are trying to carve out a cleaner identity, a campaign that culminated in a slew of amendments to the chit fund act. The chits funds act,1982 statement of objects and reasons 1a. The grounds of attack urged by the petitioners in each of these. Chit funds act, 1982 in 1982, the ministry of finance enacted the chit funds act to regulate the sector. Regulator of chit funds is the registrar of chits appointed by respective state governments under section 61 of chit funds act. This act will extends to whole of india except the state of jammu and kashmir. The chit funds act, 1982 was enacted to provide for the regulation of chit funds which are indigenous business in india and have conventionally satisfied the financial needs of low income. It prohibits a fund from being created without the prior sanction of the state government. Recently, while working with one of my clients, i was introduced with the concept of chit funds. Be it enacted by parliament in the thirtythird year of the republic of india as follows. Chit funds in india are governed by various state or central laws. Under this law, registration of the chit fund business can be done only by the respective state. The law governing and regulating the business of chit fund in india is the indian chit fund act, 1982 herein after referred to as the act.
Chit funds act 1982 defines a chit fund company as a company which conducts, manages and supervises a chit fund scheme. It comprises of all the essential facilities and features which required to streamline your chit fund activates. Members can see next payment information, amount to be paid along with loan details etc. Chit funds act, 1982 bare acts law library advocatekhoj. Organised chit fund schemes are required to register with the registrar of firms, societies and chits. In some variations of chit funds, the savings are for a specific purpose. Union government chit funds act 1982 ex cept the state of jammu and kashmir new delhi.
Chit funds in india are governed by the chit funds act, 1982. Let us understand how the chit fund companies or the committee works and will then proceed to how the company is registered in terms of chit fund act. These changes have become operative from the beginning of this year. Is it required for all chit fund companies to register under chit fund act. An act to provide for the regulation of chit funds and for matters connected therewith. Appointment of authorities under chit fund act, 1982. Copies of chit agreement to be given to subscribers. Chit funds are indigenous financial institutions in india that cater to the financial needs of the lowincome households, which have been excluded from the formal financial system. The chit funds act, 1982 and delhi chit funds rules, 2007. Short title, extent and commencement 1 this act may be called the chit funds act, 1982.
Pdf chit funds as an innovative access to finance for. Organised chit fund schemes are required to register with the registrar or firms, societies and chits. According to the definition given by chit funds act 1982, chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money or a certain quantity of grain instead by way of periodical installments over a definite period. Some chit funds are conducted as a savings scheme for a specific purpose. There are over 10,000 registered chit fund in india. The dominant purpose of the act is to regulate the chit and control the activity of the foreman and protect the interests of the subscribers. Chit fund a chit fund is a type of rotating savings and credit association system practiced in india chit fund schemes may be organized by financial institutions, or informally among friends, relatives, or neighbours. Notification under chit funds act, 1982 appointments.
A chit fund company is a company that manages, conducts, or supervises such a chit fund, as defined in section of the chit funds act, 1982. Get name, address and contact details for chit funds in maharashtra, india. Delegation of powers to compound offences under chit fund act, 1982. Balussery provides chit funds services in mumbai,a central location with easy access to sionmatunga kings circle and koliwada stations and very close to sion bus depot, it soon entered the heart of the people of aamchi mumbai and across part ofmaharasthra, check our monthly schemes and plans. Under this act, the chit fund businesses can be registered and regulated only by the respective state governments. Chit fund act 1982 is a central act to provide for the regulations of the chits fund business and for the matters related thereon. Received the assent of the president on the 22nd june 1 961. A chit fund is a very popular type of savings scheme in.
Websoftex chit fund software is a web based application for chit fund companies. The chit funds act, 1982, is within the leigislative competence of the parliament. I was aware of sarada chit fund scam but not completely aware of working behind the chit fund. Maharashtra maharashtra chit fund act 1975 companies whic h have cheated and run off with. Whew it is expedient to provide for the regulation of. Chit fund companies are widely famous with their name known as committee. I also want the address where this can be done and the documents required. Dated 22nd november, 1974 for statement of objects and reasons, see maharashtra government gazette, part v, page 982. A chit fund is a type of savings scheme practised in india, besides other forms of savings scheme offered by various public and private sector banks, post offices, insurance corporations etc.
Chit fund is a saving cum borrowing instrument, which is unique when compared to other financial products. A chit fund is a savings cum borrowings scheme, wherein a few people known as members or subscribers come together and invest a fixed amount every month for a fixed period. The andhra pradesh chit funds act, 1971 new delhi the chit funds act,1982 and delhi chit funds rules, 2007 maharashtra maharashtra chit fund act 1975. Under the act, the central government can choose to notify the act in different states on different dates. Other similar names to chit fund are chitty or kuri. I did good research and thought of sharing my knowled. It shall come into force on such date as the central government may, by notification in the official gazette, appoint, and different dates may be appointed for different states. An act to provide for the regulation of chit funds and for matters connected there with. A presentation on chit fund scam of saradha group 1. The estimated turnover of registered chit companies all over india as of now is exceeding rs 35,000 crores per annum.
A chit fund is a very popular type of savings scheme in india it is one of the main parts of the unorganized money market industry. Maharashtra chit funds act, 1974 complete act bare act. According to a report of asian development bank, the turn over of some 1066 chit fund companies, as far back as 1986 was, an astounding rs. Chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a. Ramanujam, j the petitioners in each of these cases pray for a writ of declaration declaring that the t. Chit fund act1982 is a central act to provide for the regulations of the chits fund business and for the matters related thereon. Financial intelligence unit india, ministry of finance, govt. The chit funds act, 1982 and delhi chit funds rules, 2007 maharashtra. The chit funds in india are regulated by the chit fund act, 1982. Any person or company intends to carry chits business shall obtain prior sanction order p.
The rti query was under which act the chit funds in the state were controlled and answering to it the finance department stated that it was under chit fund act 1982. Chit, as defined by the act, means a transaction by way of which a foreman enters into an agreement with a number of subscribers that every one of them shall subscribe a certain sum of money in periodical installments over a definite. An example is the deepavali sweets fund, which has a specific end date about a week before deepavali. Chit fund companies are governed by chit fund act 1982 and rbi has specifically exempted from its core provisions. Some alone, get the price money without obligation of paying future installments. It extends to the whole of india except the state of jammu and kashmir. According to section 2b of the chit funds act, 1982. This act has been repealed by the chit funds act, 1982 40 of 1982 see section 90 repeal and savings. Amended chit fund act brings tighter norms, transparency. In exercise of the powers conferred by subsection 3 of section 1 of the chit funds act, 1982 40 of 1982, and subsection 2 of section 1 of the chit funds amendment act, 2001 10 of 2001, the central government hereby appoints 15th june, 2004, as the date on which the said provisions of those acts shall come into force in the state.
While the concept of chit funds has been very popular in south india for several decades, other states in the country have also adopted the chit fund concept in recent times. Block will be used to display browser versions to be supported by portal. I an act to provide for the regulation of chit funds in the pstae of tamil nadu. The chit fund company, which runs a chit fund, provides access to savings and borrowings for people with limited access to banking facilities. Central chit fund act chit fund companies bangalore. Under the act chit fund act department of goods and. In india, the chit funds are governed regulated by. Blog online chitfund software online chit fund, top. Below are the important findings and must known points of the chit fund act 1982. Chit funds as an innovative access to finance for lowincome households 15 in case of default or delayed payment, the chit fund organizer has to put up the liquidity on. N debt relief act, 1976 tamil nadu act, 31 of 1976 as amended, hereinafter referred to as the act and the rules made thereunder are unconstitutional, illegal, void and unenforceable in so far as they relate to them 2.
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