Chit Fund Act-1982 is a Central Act to provide for the Regulations of the Chits Fund Business and for the matters related thereon.
Any person or company intends to carry chits business shall obtain prior sanction order (P.S.O.) as per Section 4 of Chit Fund Act and also shall obtain Commencement Certificate (C.C.) as required under Section 9 of Chit Fund Act.
For the application of previous sanction to commence or conduct a chit under sub section 2 of section 4, they have to pay as fees to the extent of 0.25% of the Chit amount or Rs.250 which ever is higher if the Chit amount is upto Rs.5.00 lakhs and if the Chit amount is Rs.5.00 lakhs and above then the fee to be paid is 0.5% of the Chit amount or Rs.10,000 which ever is lower.
Depending upon the Chit Aggregate Chit Value powers are delegated to different officers as detailed below :
Particulars of progress under Chit Fund Act as at the end of 31-3-2017
If any person contravenes or abets the contravention of the provisions of the Chit Funds Act, shall be punishable with imprisonment for a term which may extend to two years or with fine which may extend to Rs.5,000/- or with both (as per section 76 of the Act).