Lawgist9Commencement of chit
(1) Every foreman shall, after all the tickets specified in the chit agreement are fully subscribed, file a declaration to that effect with the Registrar.
(2) As soon as may be after a declaration is filed under sub-section (1), the Registrar shall, after satisfying himself that all the requirements relating to sanction, registration of chit and other matters have been duly complied with, grant a certificate of commencement to the foreman.
(3) No foreman shall commence any auction or the draw of any chit or appropriate any 1[gross chit amount] unless a certificate of commencement referred to in sub-section (2) is obtained by him.
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1.Subs. by s. 3, ibid., for “chit amount” (w.e.f. 1-1-2020).
- 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
