LawgistThe Chit Funds Act
12Prohibition of transacting business other than chit business by a company
(1) Except with the general or special permission of the State Government, no company carrying on chit business shall conduct any other business.
(2) Where at the commencement of this Act, any company is carrying on any business in addition to chit business, it shall wind up such other business before the expiry of a period of three years from such commencement:
Provided that the State Government may, if it considers it necessary in the public interest or for avoiding any hardship, extend the said period of three years by such further period or periods not exceeding two years in the aggregate.
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REGISTRATION OF CHITS, COMMENCEMENT AND CONDUCT OF CHIT BUSINESS
- 4 Prohibition of chits not sanctioned or registered under the Act
- 5 Prohibition of invitation for subscriptions except under certain conditions
- 6 Form of chit agreement
- 7 Filing of chit agreement
- 8 Minimum capital requirements for the commencement, etc., of a chit, and creation of a reserve fund, by a company
- 9 Commencement of chit
- 10 Copies of chit agreement to be given to subscribers
- 11 Use of words "chit", "chit fund", "chitty", "kuri", "fraternity fund", or "Rotating Savings and Credit Institution"
- 12 Prohibition of transacting business other than chit business by a company
- 13 Aggregate amount of chits
- 14 Utilisation of funds
- 15 Alteration of chit agreement
- 16 Date, time and place of conducting chits
- 17 Minutes of proceedings
- 18 Copies of minutes to be filed with Registrar
- 19 Restriction on opening of new place of business
