While the original draft of the act did not rule the auctions in a rosca, the currently effective revision of 1993 also puts a. The chit funds act, 1982, is within the leigislative competence of the parliament. These changes have become operative from the beginning of this year. Received the assent of the president on the 22nd june 1 961.
The chit groups are started in the motive of useful to all kinds of individuals, companies etc. Each subscriber is entitled to the prize amount, as determined. 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. Delegation of powers to compound offences under chit fund act, 1982. Prize chits and money circulation schemes banning act, 1978. Among other things, the act requires each chitfund company to obtain a license from the state government and rules minimum capital requirements. The bill also proposes to amend a section of the act to remove the ceiling of.
B 2641991 be it enacted by the seri paduka baginda yang dipertuan. National office for technology acquisition and promotion. 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. National office for technology acquisition and promotion act. The chit fund act, 1982 act 40 of 1982 statements of objects and reasons1 a conventional chit, is, in law, a contract between the subscribers and the fore man which provides that the subscribers shall subscribe a certain sum by periodical installments for a definite period. Madhya pradesh labour welfare fund revised pdf download. The appendices to the technical guide contain the formats of financial statements of a chit fund business prescribed by the chit funds act, 1982 and an illustrative audit programme checklist which lays down the procedures that might be gainfully used by the auditor for verification of various items appearing in the financial statements of a. Other similar names to chit fund are chitty or kuri. Appointment of authorities under chit fund act, 1982. Latest and breaking news on unregulated chit fund schemes.
Government of kerala published the chit fund rules 201204062012 notification government order nog. A year after an antichit fund law, orissa plans to define small investors discussion took place on current status of cases on 12 chit fund companies including saradha group. Act to override other laws, memorandium,articles,etc. 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. Considering the intent of the legislation and the wording of sec.
Act means the chit funds act, 1982 central act 40 of 1982. The directors of the groups have experience of more than 15 years in the same field. Some alone, get the price money without obligation of paying future installments. Be it enacted by the karnataka state legislature in the fiftyeighth year of the republic of india as follows. Bill to protect chit fund depositors amended cities news. Being an act to provide for the institution and management of a national provident fund for employees in establishments and for related purposes. In this act, unless the context otherwise requires, 1 iipproved bank means a bank approved by the government. An act to establish the national office for technology acquisition and promotion to monitor, on a continuing basis, the transfer of foreign technology to nigeria and to provide for other related matters. I an act to provide for the regulation of chit funds in the pstae of tamil nadu. In the chit funds act, 1982 central act 40 of 1982.
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. According to section 2b of the chit funds act, 1982. In this act, unless the context otherwise require, aapproved bank means the state bank of india constituted under section 3 of the state bank of india act, 1955 23 of 1955, or a subsidiary bank constituted under section 3 of the state bank of india subsidiary banks act, 1959 33 of 1959, or a corresponding new bank constituted under section 3 of. Act 452 employees provident fund act 1991 an act to provide for the law relating to a scheme of savings for employees retirement and the management of the savings for the retirement purposes and for matters incidental thereto. Chief minister mamata banerjee missed the all important session of the state assembly on thursday, which passed all amendments to the west bengal protection of interest of depositors in financial establishments amendment bill2015 the law that will regulate and monitor chit fund companies state finance minister amit mitra, who moved the motion, said in his reply during the. Under the act chit fund act department of goods and. Chit funds act, 1982 tamil nadu chit fund rules, 1984. Organised chit fund schemes are required to register with the registrar of firms, societies and chits.
In this act, unless the context otherwise requires, a conventional chit means a transaction whether called chit, chit fund, kuri or by any other name by or under which a person responsible for the conduct of the chit enters into an agreement. While the original draft of the act did not rule the auctions in a rosca, the currently effective revision of 1993 also puts a ceiling of 30% of the chits amount on the bidding. Oct 04, 2011 for instance, the andhra pradesh chit funds act 1971 had previously required the chit managers in that state to deposit only 50% of the chit value with the registrar of chits prior to the commencement of the chit scheme. 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. Zayd chit funds indias 1st interestfree chit funds.
Chit funds act, 1982 bare acts law library advocatekhoj. Organised chit fund schemes are required to register with the registrar or firms, societies and chits. It extends to the whole of india except the state of jammu and kashmir. Madhya pradesh labour welfare fund revised pdf download please login cite. We have read the provisions of the chit fund act, 1982 central chit fund act no. For instance, the andhra pradesh chit funds act 1971 had previously required the chit managers in that state to deposit only 50% of the chit value with the registrar of chits prior to the commencement of the chit scheme. A year after an antichit fund law, orissa plans to define small investors. Zcf is indias first interestfree chit fund company. Below are the important findings and must known points of the chit fund act 1982. Under this act, the chit fund businesses can be registered and regulated only by the respective state governments. Appendix means appendix i or as the case may be appendix ii to these rules 3. Be it enacted by parliament in the thirtythird year ot the reublic of india as follows.
Use of words chit and chit fund no person or body of persons, whether incorporated or not, other than a chit fund company licensed under this act shall, without the written consent. Discount, divident, drawing, firm, foreman, nonprized subscriber, prize amount, subscriber, ticket. An act to provide for the regulation of chit funds and for matters connected therewith. 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. Chief minister mamata banerjee missed the all important session of the state assembly on thursday, which passed all amendments to the west bengal protection of interest of depositors in financial establishments amendment bill2015 the law that will regulate and monitor chit fund companies. New rules for chit funds and deposit schemes 4 min read. The chits funds act, 1982 introduction to the chits funds act statement of objects and reaons. Chit funds in india are governed by various state or central laws. Our concern is a proper registered chitfund company under the chit fund act. A year after an antichit fund law, orissa plans to define. Be it enacted by parliament in the thirtythird year of the republic of india as follows. Chit funds in india are governed by the chit funds act, 1982. Sahakara sindhu department of cooperation, government of karnataka. May 09, 20 below are the important findings and must known points of the chit fund act 1982.
Icai the institute of chartered accountants of india. Dec 25, 2016 chit funds in india are governed by various state or central laws. Be it enacted by the legislative assembly of goa, daman and diu in the twentyfourth year of the republic of india as follows. Before that, chit funds were not governed by any central law. An act to provide for the regulation of chit funds and for matters connected there with. In case of nonprize chit holder, in the event of default, section 28 of the chit funds act, 1982 provides for the remedy as by way of removal of the nonprized subscriber or alternatively, a foreman may substitute any person in place of the defaulting subscriber as per section 29 of the chit funds act. Whew it is expedient to provide for the regulation of. Central chit fund act chit fund companies bangalore. Short title, extent and commencement 1 this act may be called the chit funds act, 1982. U65992ka2011ptc061044, and is registered by the government of karnataka under the chit funds act, 1982. Income from chit fund to be recognized on contract. We further undertake in register the chit within 12 months from the date of sanction by the state government as per section 41 of the chit funds act, 1982. The chits funds act,1982 statement of objects and reasons 1a. The goa, daman and diu chit funds act, 1973 act 16 of 1973 5th december, 1973 an act to provide for the regulation of chit funds in the union territory of goa, daman and diu.
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