Regulator of chit funds is the registrar of chits appointed by respective state governments under section 61 of chit funds act. Jul 28, 2017 the chit funds act, came into existence in 1982, the ministry of finance enacted the chit funds act to regulate the sector. Received the assent of the president on the 22nd june 1 961. 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.
Dated 22nd november, 1974 for statement of objects and reasons, see maharashtra government gazette, part v, page 982. At the central level, the chit funds act 1982 governs chit funds. Chit funds act 1982 court karnataka judgments legalcrystal. A bill to streamline and strengthen the chit fund sector was introduced in the lok sabha on. May 09, 20 their was a huge uproar in media about the recent scam of saradha group and canvassing it as a chit fund company. Under the act chit fund act department of goods and services tax.
The andhra pradesh chit funds act, 1971 andhra pradesh act 9 of 1971, the kerala chitties act, 1975 kerala act 23 of 1975, the maharashtra chit funds act, 1974 maharashtra act lv of 1974, the tamil nadu chit funds act, 1961 tamil nadu act 24 of 1961, as in force in the state of tamil nadu and in the union territories of chandigarh and. Before that, chit funds were not governed by any central law. The chit fund company, which runs a chit fund, provides access to savings and borrowings for people with limited access to banking facilities. Chit funds in india are governed by the chit funds act, 1982. Chit fund is defined as per the section 2b of the chit fund act, 1982.
May 07, 20 new regulations for chit funds in the offing. Singh, ips director general state vigilance bureau. The chit funds act 1982 indian bare acts india bare act. The business in india is regulated under the chit fund act, 1982. New regulations for chit funds in the offing times of india. 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. Tamil nadu, delhi, andhra pradesh, and maharashtra were. In their functions, like the banking industry, chit funds act as an. Prior to the passing of local fund audit act,1930,the examiner was the auditor for local boards vide general departments gr no. Pdf chit funds are a form of rotating saving and credit. Act to override other laws, memorandium,articles,etc. Organised chit fund schemes are required to register with the registrar of firms, societies and chits.
Chit fund act department of goods and services tax. 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. Apr 21, 2020 chit fund act latest breaking news, pictures, videos, and special reports from the economic times. The union cabinet has given its approval to introduce the chit funds amendment. Statement of objects and reasons 1a conventional chit. Chit fund act 1982 is a central act to provide for the regulations of the chits fund business and for the matters related thereon. In uttar pradesh, chit funds, lotteries etc, are regulated by the provisions of the manual of. Kerala act, maharashtra act and andhra pradesh act shifted their business to this. 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. Nov 24, 2017 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.
Pdf modelling credit and savings behaviour of chit fund participants. It extends to the whole of india except the state of jammu and kashmir. The chit funds act 1982 in india bare acts, banking and insurance, business and corporate, constitutional, consumer laws, criminal law, energy, environmental, family and inheritance, heritage and national importance, immigration law, labor law, the chit funds act 1982 national security, others, procedural and administration, property related, public utilities, shipping laws, tax laws. Karnataka act no 2 of 2008 the chit funds karnataka amendment act, 2007 arrangement of sections sections. Maharashtra chit funds act 1975 blogs, comments and archive news on. Appendix ii table of fees, levy of fees under sections 62 and 63 of the chit funds act, 1982, pdf icon 195. Section 2b of the under chit fund act 1982 defines chit as. Act 22 of 1950, merged areas enclaves and specified areas amd of laws act,1950. 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. Financial intelligence unit india, ministry of finance, govt. Constitutional validity of the chit funds act, 1982 act no. For statement of objects and reasons, see maharashtra government gazette, part v, page 982. The 1982 act regulates chit funds, and prohibits a fund from being created without the prior sanction of the state government. This act has been repealed by the chit funds act, 1982 40 of.
In india, the chit funds are governed regulated by. A chit fund is a type of rotating savings and agreement among different persons i. Under this act, the chit fund businesses can be registered and regulated only by the respective state governments. Amendment of section 84 statement of objects and reasons under section 70 of the chit funds act, 1982 central act 40 of 1982 any. Any person or company intends to carry chits business shall obtain prior sanction order p. The chit funds act, 1982 was enacted to provide for the regulation of chit.
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. Received the assent of the president on 19th august, 1982, published in the gazette of india, extraordinary, pt. Chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or. Proposed amendments in the chit fund act, 1982 lexology. The chits funds act, 1982, indian bare acts at, a website for indian laws and bareacts, legal advice and law documents in india. All branches and offices in singapore of the company shall be deemed to be one chit fund company for the purposes of this act.
According to section 2b of the chit funds act, 1982. The national waterway kakinadapondicherry stretch of canals and the kaluvelly tank, bhadrachalamrajahmundry stretch of river godavari and wazirabadvijayawada stretch of river krishna bill, 2006. Be it enacted by parliament in the thirtythird year of the republic of india as follows. Lok sabha takes up the national institute of design. 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. Short title, extent and commencement 1 this act may be called the chit funds act, 1982.
An act to provide for the regulation of chit funds and for matters connected therewith. Central chit fund act chit fund companies bangalore. Chit funds act, 1982 bare acts law library advocatekhoj. The chits funds act,1982 be it enacted by parliament in the thirtythird year of the republic of india as follows. Various state and central regulations regulate chit funds in india.
Hence to be a knowledgeable investor better first understand the act. An act to provide for the regulation of chit funds and for matters connected there with. The chits funds act,1982 statement of objects and reasons 1a. Act 30 of 1969 maharashtra mathadi, hamal and other manual workesregulation of. Foreman of chit fund clause 23a being inserted by finance bill, 2015 w. The chits funds act,1982 be it enacted by parliament in the thirty. Chit funds act 1982 section 25 liability of foreman to. This act has been repealed by the chit funds act, 1982 40 of 1982 see section 90 repeal and savings. Get name, address and contact details for chit funds in maharashtra, india.