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APPENDIX – I

FORM I

(See Section 4(2) and Rule 3)

FORM OF APPLICATION TO BE USED BY A FOREMAN FOR OBTAINING

PREVIOUS SANCTION TO COMMENCE OR CONDUCT A CHIT

From Place:
Date:

To
The Secretary to the Govt.
of _____________________
(The Authorised officer by designation)

Sir,

I ______________ Son / Wife / Daughter _____________________ (here

state profession or occupation) residing at _______________________ I / We, the
Chairman and Secretary respectively* on behalf of (name of the firm, Company,
Corporation, Coop-Society etc.) situated at having its registered office at
_________________________ desire to commence and conduct a chit as foreman
at (here specify the place with postal address in detail). Full particulars in this
regard are given in the Annexure hereto.

2. A certified true copy of the resolution passed by the Managing

Committee / Board of Directors at its meeting held on the
______________________ for commencing and conducting the chit in question is
enclosed.

3. I / We remit herewith a sum of Rs _____________ (Rupees in words)

_________________ only) being the fees prescribed for the purpose.
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4. I / We hereby certify that the aggregate chit amount of the chits run by
me / us is Rs______________ (Rupees _____________________ only) on the date
of this application and does not exceed the aggregate chit amount prescribed by
Section 13 of the Chit Funds Act, 1982 (Central Act No. 40 of 1982).

5. I / We request you to accord your sanction for commencing and

conducting the Chit. On receipt of such sanction further steps for registration etc., of
the chit will be taken.

6. We further undertake in register the chit within 12 months from the date
of sanction by the State Government as per Section 4(1).

We have read the provisions of the Chit Fund Act, 1982 (Central Chit
Fund Act No. 40 of 1982) and the Rules framed thereunder and agree to abide by
the same in the conduct of the chit business.

Yours faithfully,

Chairman :

Secretary :
Encl: Sheets

for or on behalf of

----------------------------------------------------------------------------------------------------------------

Strike out or delete whatever is not applicable.

* Insert the designation as may be appropriate to the applicant.

@ Here enter the name of the applicant institution, if any.

--------
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ANNEXURE

STATEMENT OF PARTICULARS

1. Name and address of the company

association of individuals / coop.
Society, partnership / sole
proprietorship (address of the
registered as well as the Head
Office / administrative office, if any,
should be given).

2. Constitution i.e., whether

incorporated as company / co-op.
Society or registered / un-
registered association of
individuals / partnership / sole
proprietorship (also specify the
provision of the Act under which
incorporated / registered along with
the date of incorporation /
registration.

3. Name and addresses of the

branches / Offices if any.

4. Main objects of the institution

(enclose a copy of the
memorandum and Articles of
Association or as the case may be
of the Byelaws or rules regulating
the activities of the institution).

5. Names, occupations and

residential address of the directors
or as the case may be, of the
promoters / members of the
committee of management /
partners etc.

6. Name and residential address of

the Chief Executive Officer and two
other officers immediately next to
him, in the managerial setup.

7. Names of the Bankers and their

addresses.

8. Names of the auditors and their

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addresses.

9. Particulars of the chit(s) to be

started (such as the chit amounts,
duration of the chit, frequency of
the draws, manner of draws, etc,
also attach a copy of the draft of
the chit agreement to be entered
into with the subscribers).

10. Places where the chit scheme(s)

are proposed to be conducted.

11. Names and addresses of the

associates companies /
cooperative societies /
associations of
individuals / partnerships / sole
proprietorships.

12. Names,occupations and residential

addresses of the directors or as the
case may be of the promoters /
members of the committee of
management etc of the institutions
referred to in item 11

I / We* solemnly declare that the facts stated herein as also in the
enclosures are true in the best of my / our knowledge, information and belief.

Dated this ______ day of __________200 ___ at ______________.

Name (s) Signature (s)

Designation (s)

For and behalf of _______________________________________________

* Here enter the name of the applicant institution, if any, strike out whatever is not
applicable.

Note : (1) If the space against any items is inadequate for furnishing full
particulars, the required information should be given in separate sheets indicating
the cross reference against the relative item of this statement.
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(2) A copy each of the latest available audited balance sheet and profit
and loss account if any, should be attached.
FORM – IA
FORM OF REPLY TO THE FOREMAN FOR THE COMPLIANCE OF HIS
REQUEST FILED IN FORM – I

FROM

OFFICE OF THE REGISTRAR OF CHITS,

__________________________________

__________________________________

TO

The Foreman
__________________________________

__________________________________

I hereby acknowledge the receipt of form of application filed by you

(Foreman) _______________ for obtaining previous sanction to commence or
conduct a Chit. Your request can be complied with and the order of prior
sanction will be issued to you on ______________. His request cannot be
complied with for the reasons ___________ which are contravening provision of
______________ Appeal under section ____________ lies with
_______________ within 30 days from the date of receipt of this order.

(Seal) Signature of the Registrar

of Chits with date.
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FORM – IB

(See Section 4)

After careful examination of the Form-I, dated __________ and also

the connected records submitted by M/s. ________________________, the
undersigned in exercise of the powers conferred on him / her under Section 4 of
the Chit Funds Act, 1982 read with Notification No. __________________ hereby
issues the “PREVIOUS SANCTION” for the Chit, the details of which are given
below:

Name of the Foreman :

Chit Amount :
Installment Amount (without
dividend and any other
deductions allowed) :

No. of Installments :

No. of Tickets :

The previous sanction issued in this order shall lapse if the chit is not
registered within 12 months from this day

Place :
Date : Registrar of Chits
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FORM – II
(See Section 7 and Rule 5)

APPLICATION FOR REGISTRATION OF THE CHIT AGREEMENT

To
The Registrar of Chits,

_________________.

Dear Sir,

(a) I __________________ S/o Sri. ___________________being the

foreman conducting chit under the name and style of *_____________________.

(b) We _______________ the Chairman and Secretary respectively of

the foreman conducting chit business under the name and style of
*______________________ at ___________________ hereby apply for
registration of the Chit Agreement.

(2) The Chit Agreement in duplicate is attached herewith together with a

sum of Rs. ________ being the registration fees as required under the Act of Chit
Funds Rules, 2008.

(3) The number of current chits which are running as on the date of this
application is _________ and the aggregate chit amount of these chits involved
therein is Rs. _________ which is within the limits specified in Section 13 of the
Chit Funds Act, 1982 (Central Act No. 40 of 1982).

(4) A certified true copy of the sanction obtained in Form IB under

Section 4 of the above Act for commencement and conduct of the chit in question
is enclosed. A copy of the application dated the ____________ together with its
enclosures made to the State Government / authorized officer in this behalf is
also enclosed for information and ready reference.
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(5) I / We remit herewith a sum of Rs. _______________ (Rupees

___________________only) being the fee prescribed for the purpose.

DECLARATION

(6) I / We have read the Chit Funds Act, 1982 (Central Act No. 40 of
1982) and the Rules made by the State Government thereunder and I / We
declare that the chit agreement has been drawn up in confirmity with the
provisions of the said Act and the Rules.

The above statements are true and complete to the best of my / our
knowledge, information and belief.

Yours faithfully,

Chairman

Secretary

Name(s)

Designation (s)

* for and on behalf of Foreman

Note 1. * Here enter the name of the applicant institution if any.

2. Strike out or delete whatever is not applicable insert the designation(s)

as may be appropriate to the applicant.
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FORM – III
(See Section 7(2) and Rule 6))

ENDORSEMENT OF REGISTRATION

I hereby certify that the chit agreement relating to the chit proposed to be
conducted by _____________________ (the name and address of the foreman
should be filled in here) as a foreman has this _____ day of ___________2008
been registered by me under sub-section(2) of Section 7 of the Chit Funds Act, 1982
(Central Act No. 40 of 1982) as Chit No. __________ of 2008 at ____________.

Given under my hand and seal this ________ day of __________ 2008 at
____________________.

Date : Signature of Registrar

(SEAL)
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FORM IV
(See Section 8(4) and Rule 9)

Place :
Date :

The Registrar of Chits,

Dear Sir,

In terms of sub-section(4) of Section 8 of the Chit Funds Act, 1982 (Central

Act No. 40 of 1982) we hereby seek approval for appropriating sum of Rs.
__________ (Rupees in words) _____________ company. This withdrawal has
been necessitated by the following circumstances:

(Here state the circumstances under which withdrawal from the reserve fund
has become necessary).

2. We enclose for your information a copy each of the profit and loss account
and the balance sheet for the last two accounting years as also a proforma of the
balance sheet and profit and loss account for the current year ended ____ 200___.
A true copy of the resolution passed by the managing Committee / Board of
Directors on the ___________ for appropriation of the said sum from the reserve
fund is also enclosed. We shall be glad to furnish such further information as may
be required by you.

3. We remit herewith a sum of Rs _________ (Rupees _____________ only)

being the fees prescribed for the purpose.
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4. We shall be glad if you will kindly grant us permission to withdraw a sum of

_____________________ from the reserve fund.

Yours faithfully,

Chairman

Secretary

* (for and on behalf of Company)

----------------------------------------------------------------------------------------------------------------

* enter the name of the applicant / company.

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FORM IV – A

(See Section 8(4) Rule 9)

FORM OF REPLY TO THE FOREMAN FOR COMPLIANCE OF HIS REQUEST

FILED IN FORM IV

FROM

OFFICE OF THE REGISTRAR OF CHITS

_________________________________

To
The Foreman,

_______________

I, hereby acknowledge the receipt of Form of application filed by you

(Foreman) _____________ for grant of permission to withdraw a sum of Rs.
__________(Rupees in words) from the reserve fund.

A sum of Rs. ___________(Rupees in words) is in credit in your reserve fund

account. Your request can be complied with for the circumstances stated in your
application under which withdrawal from the reserve fund has become necessary
and permission will be accorded in From IV on _______________.

Your request cannot be complied with for the reasons for ______________
(Reasons for refusal should be mentioned). An appeal U/s __________ lies with
_____________ within 30 days from the date of receipt of this order.

(Seal) Signature of the Registrar

of Chits with date.
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FORM - V
(See Section 9(1) and Rule 10)

Place:
Date:
To
The Registrar of Chits,

_________________

Dear Sir,

By your letter dated the _________ you were pleased to grant me / us

certificate of registration to commence a new chit of a chit amount of Rs_________
and of a duration ___________ months.

2. I / We have subsequently enlisted the required number of members and we

hereby declare in terms of sub-section(1) of Section 9 of the Chit Funds Act, 1982
(Central Act No. 40 of 1982) that all the tickets specified in the chit agreement have
been fully subscribed.

3. I / We remit herewith a sum of Rs_________ (Rupees in words only) being

the fees prescribed for the purpose of filing this declaration.

Yours faithfully,

Chairman

Secretary

for and on behalf of (Foreman)

----------------------------------------------------------------------------------------------------------------

Strike out or delete whatever is not applicable insert such designation(s) as may be
appropriate to the applicant.
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FORM – VI
(See Section 9(2) and Rule 11)

CERTIFICATE OF COMMENCEMENT OF CHIT

Place :
Date :

Office of the Registrar of Chits.

________________________

I hereby certify that * ____________ is entitled to commence and conduct the

@
chit _____________ the chit agreement in respect of which was registered in my
office as Chit No _________ of 200 ____.

Given under my hand and seal, this ________ day of __________ 200___ at
__________________.

Signature of Registrar

(Seal)
----------------------------------------------------------------------------------------------------------------

* Here enter the name of the foreman.

@
Here mention the chit amount and duration etc, of the chit(s).
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FORM – VII
(See Section 10(2) and Rule 12)

To
The Registrar of Chits,
_________________

Dear Sir,

The Chit Funds Act, 1982 (Central Act No.40 of 1982)

I / We _______________ the Foreman of the chit / chairman and secretary on

behalf of the Foreman / Firm / Company conducting the chit, the chit agreement
bearing registration number __________ of 200____ has been registered in the
office of the Registrar of Chits _________ do hereby certify that I / We have
furnished to every subscriber of the chit a copy of the said chit agreement duly
certified by me / us to be a true copy. The copies were furnished to each of the
subscribers on _____________.

The date of obtaining the certificate of commencement of the said chit granted
under sub-section(2) of Section 9 is ___________________.

The first draw of the said chit was held on _____________.

Yours faithfully,

Chairman

Secretary
Place:
Date: for and on behalf of………..
(Foreman)

----------------------------------------------------------------------------------------------------------------
Strike out / delete whatever is not applicable. Insert the designation(s) as may be
appropriate to the applicant.
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FORM VIII
(See Section 6 and Rule 13)
Form of Chit Agreement

(Articles of Agreement between the Foreman and the Subscribers)

1. Office where the chit is registered.

2. Year and Registered No. Year No
3. Full name and address of foreman
4. Occupation (if applicable)
5. Age (if applicable)

I. Chit amount and No of tickets.

1. No of tickets or fraction thereof Full
Held by each subscriber 3/4
1/2
1/4
1/8

2. No. of installments and amount payable No. Amount

for each ticket at every installment Rs.

3. Chit amount Rs.

II. Duration of the chit

1. Date of 1st installment.
2. Dates of subsequent installments.
3. Date of termination.
4. Duration of the chit. Years months

III. The place, time and probable date when the chit is to be commenced.

1. Place (give full particulars)

2. Probable date
3. Time of commencement of the proceedings.
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IV. Particulars of security given or deposited by foreman.

1. Under Section 20 of the Act, the following security sufficient to the

satisfaction of the Registrar of Chits, the particulars of which are described below,
has been given for the proper conduct of the chit:-

(Here enter description of security such as cash, Government security

(immovable property) etc., (in case immovable property has been charged, its
particulars such as its description / location / market value etc., should be given).

2. No. and date of the certificate of Registrar of Chits regarding, the

sufficiency of security, if obtained.
3. The foreman shall not get release of the security in full until all the liabilities
under the chit are discharged.

V. Mode of conducting the chit.

The foreman shall exhibit a list of non-prized subscribers before every
auction.

1. The subscriber who is to get the prize at any installment shall be

determined by lost or by auction at the time and place specified in Article III.

(Here specify the smallest fraction of a ticket the prize for which will be
determined by lot or by auction, and the time allowed for each purpose).

2. Where the prize is to be determined by auction, a ticket or fraction

thereof shall be auctioned for a sum not less that the chit amount minus foreman’s
commission, and the subscriber who bids for the highest discount not exceeding
40% of the total amount of the chit shall be entitled to have it confirmed in his name.

Note: Where a fraction of a ticket is auctioned, the subscriber who bids it for the
highest discount is entitled to have confirmed in his name at the same rate as many
such fractions as he wished to bid.
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3. In case where the subscribers are not be prepared to bid any ticket or
fraction thereof or where the discount is not sufficient to meet the foreman’s
commission, the subscriber who is entitled to the prize amount shall be determined
by lot. The subscriber so determined shall be deemed to be the prized subscriber
who shall be entitled to the chit amount for his ticket less foreman’s commission for
that ticket.

4. A defaulter-subscriber shall not be entitled to take part in the

proceedings.

5. If for any reason the subscriber is unable to take part in the proceedings,
he may in writing authorize an agent in that behalf. Such agent shall have all the
rights and privileges of a subscriber of such proceedings.

VI. Mode of payment of each installment:

1. Every subscriber shall on the date of each installment pay in the foreman
the amount due for his ticket for each such instalment and get a receipt in that behalf
from the foreman.

2. In the case of the prized subscriber, if the amount due from him for a
particular instalment is not paid on the date of that instalment, it shall be paid within
(here mention weeks or months) with interest at (here specify the rate) failing which it
shall be competent for the foreman to realize from the ___________ defaulter in a
lump sum all the future subscriptions due from him together with the interest due
thereon and other incidental expenses.

3. In the case of a non-prized subscriber, if the amount due from him for a
particular instalment is not paid on the date of that instalment, it shall be paid within
(here mentioned week or months) with interest at (here specify the rate) failing which
it shall be open to the foreman to remove him from the list of subscribers and have
another person substituted for such defaulter subscriber. The foreman shall duly
inform the defaulter subscriber of the action taken against him.
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Note: Under clauses (2) and (3), the period within which the amount shall be paid
and the rate at which interest due thereon shall be paid may be such as shall not be
inconsistent with the provisions of the Act or any law for the time being in force.

4. A non-prized defaulting subscriber shall be entitled to the amount paid by

him and the discount due to him on his executing an acknowledgement in writing at
the time the substituted subscriber draws the prize amount of the defaulter-
subscriber fails to obtain the amount due to him, the foreman shall deposit the same
in the approved bank. If the foreman fails to pay such subscriber, the amount so
due to him on the due date, it shall be competent for such subscriber to realize such
amount with interest permissible under the law for the time being in force.

VII. Procedure for receiving the prize amount by a prized subscriber.

1. A prized subscriber or his nominee shall receive from the foreman the prize
amount within (here specify the period) after furnishing to the satisfaction of the
foreman sufficient security, for the payment of future subscriptions.

2. In case the prized subscriber or his nominee fails to receive the prize
amount after furnishing sufficient security the foreman shall deposit the amount in
the approved bank and inform the prized subscriber of that fact.

3. In case the amount so deposited is not sufficient for the payment of future
subscriptions, it shall be competent to the foreman to realize from such prized
subscriber such amount as may be deficient together with the interest due thereon
and all other incidental charges.

4. In case there remains any portion of the amount deposited after paying the
future subscriptions and other charges such portion shall be payable by the foreman
to the prized subscriber after the termination of the chit, failing which it shall be
competent for the prized subscriber or his nominee to realize from the foreman such
portion as remains together with the interest due thereon from the date of termination
of the chit.
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5. If at any time after the prize amount is deposited in an approved bank, the
prized subscriber of his nominee furnishes sufficient security, the foreman shall
withdraw the amount so deposited and pay it to the prized subscriber or his nominee
after deducting there from the amount due from him for the payment of the
instalment prior to the date on which the security is furnished.

6. If the foreman fails to pay the prize amount to the prized subscriber or his
nominee furnishing sufficient security, it shall be competent for such subscriber or his
nominee to realize from the foreman the prize amount together with interest due
thereon from the date of furnishing such security.

VIII. Disbursement of Discount

The discount for every ticket auctioned shall be distributed equally between
the prized and non-prized subscribers after deducting there from the foremen’s
commission.

IX. Foreman’s Commission and the installment at which the foreman is to get the
prize.

1. (Here specify the date and number of instalment at which the foreman is to
get the prize) First and the last instalment not being subject to auction, the
subscribers shall be liable to pay the full amount of their tickets.

2. Here specify the rate per cent of foreman’s commission and the total
amount of commission chargeable on the chit amount.

Note: Any other amount agreed to by the subscribers for any other purpose may also
be specified here.

X. Transfer how to be effected

1. It shall not be competent to any subscriber to transfer his rights in a chit

except with the consent in writing of the foreman provided that no such consent shall
be necessary in the case of transfer by a subscriber whose name has been removed
by the foreman from the list of subscribers for default of payment of subscriptions.
The transferee (whether he is already a subscriber or not) shall be entitled to no
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more rights than the transferer had in the chit in respect of the ticket or fraction
thereof transferred.

2. No transfer of the rights of a foreman to receive subscriptions from the

prized subscribers shall be made without the previous sanction in writing of the
Registrar of Chits. Any such transfer shall, if it defects or delays a non-prized
subscriber, be avoidable at the instance of such subscriber.

XI. Balance sheet and subscribers right to examine Chit Records:

1. On termination of a chit, the foreman shall prepare the balance sheet

containing a summary of the assets and liabilities of the chit and giving such
particulars as will disclose the nature of the assets and liabilities an how the value of
the assets has been arrived at. Such balance sheet shall be made available for
auditing by the auditors specified in Rule 29 and a certificate or such auditing shall
be received by the foreman and kept by him.

2. The foreman shall make available for examination by the subscribers all the
chit records between (here specify the time) on all the dates of the draw.

XII. Banks where chit money may be deposited (Here specify the approved bank(s)
the foreman proposes to deposit chit money).

XIII. Miscellaneous:

1. The subscriber who gets his prize at the last instalment shall be entitled to
the chit amount less the foreman’s commission. The foreman shall pay up such
amount within (here specify the period) from the normal date of last draw or last
installment failing which the prized subscriber shall be competent to realize the
amount from the foreman together with the interest due thereon the date aforesaid.

2. Any amount due to the foeman from any subscriber on account of the chit
shall be a first charge on the subscriptions paid by such subscriber. Similarly, the
security and all chit money deposited by the foreman shall be liable for discharging
any amount due from the foreman to the subscribers.
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3. Receipts shall be granted for all payments by the foreman to the

subscribers or by the subscribers to the foreman duly affixing the Revenue Stamp
required as per Article 51 of schedule 1 of the Indian Stamp Act, 1899.

4. The chit amount shall in no case be enhanced, but if necessary, it may be

reduced.

5. If all the non-prized and un-paid prized subscribers give consent in writing
for making any alteration in the chit agreement not in consistent with the provisions
of the Act and the Rules made there under the foreman shall convene the meeting
for that purpose.

6. If for any default of the foreman the conduct of the chit is not continued, the
foremen shall pay to the non-prized subscribers their contributions including dividend
within (here specify the period) failing which it shall be competent for such
subscribers to realize the amount together with the interest due thereon from the
foreman or from all or any of the following assets.

a) the security given or deposited by the foreman;

b) other properties belonging to the foreman;
c) the future subscriptions due to the foreman from the prized
subscribers.

7. In case the foreman holds tickets as an ordinary subscriber in addition to

the ticket of which he is entitled to the prize without deduction of the discount, he
shall not have any more rights, or privileges than the other subscribers have in the
chit. When the foreman bids such tickets he shall furnish sufficient security for the
payment of future subscriptions as required by the Act and the Rules made
thereunder.

8. If before the termination of the chit, the foreman dies or otherwise becomes
unable to conduct the chit,
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a. here specify the arrangements made for the conduct of the chit.
b. In such a case one or more of the non-prized subscribers
authorized by a special resolution may, in the absence of any
provision in this Chit Agreement for the future conduct of the chit,
take the place of the foreman and have the right to continue the
chit on to make suitable arrangements for the future conduct of
the chit.

9. Here specify any other provisions that may be agreed to such as payment
of interest or penalty, if any payable or any default in the payment of stipulated
installments etc.,

10. The subscribers who have affixed there signatures hereunder agreed to
the above Articles.
Sl. No. Name and full No. of tickets Subscribers Name,
address of taken signature and Signature and
subscriber date address of
witness
1 2 3 4 5

11. The total number of subscribers should be limited to the total number of drawn
/ auctions that have been agreed to and each subscriber shall be entitled to
the number of chits held by him, in each chit.
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FORM IX
(See Section 16 and Rule 16)

Notice to subscribers of Chit Number _____ of 200__

Sir,

This is to inform you that the __________________ draw in monthly /

quarterly / half yearly / yearly chit No ___________ 200__ in which you are one of
the subscribers will be held on _____ day _________ (month) ______ 200___ at
A.M / P.M at ______________ (address) ______________ be present at the draw in
person or by your duly authorized agent.

Yours faithfully,

Secretary

for and on behalf of (foreman)

Strike out or delete whatever is not applicable. Insert such designation(s) as may be
appropriate.
 25

FORM –X
APPLICATION FOR PERMISSION TO FURNISH SECURITY
FOR CONDUCTING THE CHIT

To
The Registrar of Chits,

Dear Sir,

I / We propose to give the undernoted security in respect of the chit proposed

to be started by me / us, the certificate for commencement of which was granted by
you on ________ (vide No _________ dated __________ ) other particulars are also
given below.

1. Name & Address of the Applicant

2. Age and occupation
3. Chit amount
4. Details of cash / Government Security / any other movable security
/ offered as security
5. Details of immovable properties, offered as security :
1. ____________________ District __________________
Sub-district
Taluk
Village
Sy.No.
Area etc.
2. ____________________ District
Sub-district
Taluk
Village
Sy.No.
Area etc.
 26

6. Rights of the applicant over the property :

7. Market value of the property:
8. Details of prior encumbrances if any, on the property:
9. Movable (and immovable) properties belonging solely to the
applicant (to be shown separately)
10. Whether the applicant has any debt and if so, the amount of such
debt.
11. Whether the applicant has conducted any chit before and if so,
whether there is any subsisting liability under the same.
I am / we are appending herewith:
(1) title deeds in support of title to the property offered as security;
and
(2) the encumbrance certificate of the property for the past 30
years.

The information and particulars furnished herein are true and correct
to the best of my / our knowledge information and belief.

Yours faithfully,
Chairman :
Secretary :

Place : Signatures(s) :
Date : for and on behalf of

Note : 1Applicable only when the security offered is immovable property.

2
Insert the designation as may be appropriate to the applicant, Strike out /
delete whatever is not applicable.

DETAILS OF DECISION

(Seal) Signature of Registrar of Chits

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FORM –XI
(See Rule 16(3))

CERTIFICATE OF SUFFICIENCY OF SECURITY

Office of the
Registrar of Chits,

Place :
Date :

In the case of

1. Cash / Government security

I hereby certify that I have satisfied myself that the amount / Government
security mentioned herein and deposited in the approved bank / transferred in my
name (should it be in Registrar’s name or on behalf of Government of Andhra
Pradesh) is adequate and that the same is accepted U/s 20 of the Chit Funds Act,
1982 (Central Act 40 of 1982).

(Seal) Signature of the

Registrar of Chits.
 28

FORM XII
(See Section 20(3) and Rule 20)

APPLICATION FOR SUBSTITUTION OF THE SECURITY

Place :
The Registrar of Chits, Date :

Dear Sir,

I / We propose to give the undernoted security in substitution of the original

security for proper conduct of the chit for the commencement of which a certificate
had been granted by you (vide No _____ Dt. _________ ) certain other particulars
are also given below.

1. Name of foreman.

2. Age & occupation if the foreman

is not a firm or a company.

3. The office in which the chit agreement

of the chit has been registered and
the number and year of registration.

4. Chit amount.

5. Details of the original security given.

6. Whether the applicant has any debt

and if so, the amount of any such debt
and to whom they are due.

7. Details of Government security / other

securities offered as substituted security.
 29

I / We hereby declare that the information and particulars furnished herein are
true and correct to the best of my / our knowledge, information and belief.

Yours faithfully

Chairman

Secretary

for and on behalf of

----------------------------------------------------------------------------------------------------------------

Strike out / delete whatever is not applicable. Insert the designation(s) as may be
appropriate to the applicant.

Decision of the Registrar

(Seal) Signature of the Registrar.

 30

FORM XIII
(See Section 23 and Rule 25)

FORM OF REGISTER OF SUBSCRIBERS TO BE MAINTAINED

Office where the chit agreement of the chit is registered __________.

The Registration number and year of registration of Chit Agreement of the chit
_______________________.

S. No. Name and Date of Date of Chit Subscriber

according to full address signing the receipt of
chit of the chit the copy of
agreement subscriber agreement the chit
No. of Amount
agreement
tickets
by the
subscriber
1 2 3 4 5 6

ASSIGNMENT

Name and Date of No. and Amount Date on which

address of the assignment fraction of (Rs.) the Foreman
assigned tickets recognized the
assignment
7 8 9 10 11

SUBSTITUTION

Reason Date of Name & Date of Number Amount Date of R

for the removal address of substitution & intimation E
removal the fraction of the M
of substituted of substitution A
subscriber subscriber tickets to the R
removed K
subscriber S
12 13 14 15 16 17 18 19
 31

FORM XIV
(See Section 23 and Rule 25)

FORM OF THE LEDGER TO BE MAINTAINED

Office where the Chit agreement of the chit is registered _____________

Registration number of the chit agreement ________________________

Section I – Receipt and Payments in respect of subscriber ____________

Number of Subscriber __________________

Name of Subscriber ___________________
Number of Tickets taken ________________
Chit Amount ______________Rs _________

Date Number of On what Amount of Dividend due

instalment account subscription for to the
received or each subscriber for
paid by the instalment each
foreman instalment
4 5
1 2 3
(Rs.) (Rs.)

Amount paid by the Amount General Signature of the R

subscriber received number in E
Share Interest back by the Day Subscriber Foreman M
Amount subscriber Book A
R
K
S
6 7 8
9 10 11 12
(Rs.) (Rs.) (Rs.)
 32

Section – II – Deposit and Withdrawal Account of the foreman ______________

Name of the Bank in which money is deposited __________________________

Date For what Amount Interest Balance Amount

purpose deposited accruing after each withdrawn
deposited or transaction
withdrawn
1 2 3 4 5 6
(Rs.) (Rs.) (Rs.) (Rs.)

Balance Number in the Day Signature of the Remarks

Book Foreman
7 8 9 10
 33

FORM XV
(See Section 23 and Rule 25)

FORM OF THE DAY BOOK TO BE MAINTAINED

Office where the Chit agreement of the chit is registered _____________________

Registration number of the chit agreement _________________

DAY BOOK

On what
General account
Date Receipts
Number received
or paid
Withdrawal Other Total
Subscription Interest
from Bank Items Receipts
1 2 3 4 5 6 7 8
Rs. Rs. Rs. Rs.

Reference Expenditure
to receipt in
the receipt
book
Amount Foreman’s Deposit in Other items Total
paid to Commission the bank Expenditure
subscriber
9 10 11 12 13 14
Rs. Rs. Rs. Rs. Rs.

Balance Reference to the Signature of Remarks

page number of the Foreman
voucher in the files
of vouchers
15 16 17 18
Rs.
 34

Note:

1. The balance should be struck in column (15) at the close of each day. The
monthly total of receipts and expenditure shall be struck at the end of each
month.
2. In column (2) each transaction shall be assigned a serial number. There shall
be one separate set of serial numbers for each calendar year.
3. If any amount is received from or paid to more than one subscriber at a time
the amount paid to or received from each subscriber should be entered as a
separate item.
4. If more than one amount is received from or paid to the subscriber at a time
each amount paid to or received from the subscriber should be entered as
separate item.
 35

FORM – XVI
(See Section 23 and Rule 25)

Original
Duplicate Receipts Serial Number

Received from ____________________ to the credit of ___________ the amounts

detailed below in respect of the Chit Agreement registered under number of
___________200__.

Rs. Ps.

Payment for current installment

Arrears of subscription (with details)
Penalty for overdue subscription
Fees for inspection of records
Other receipts (to be specified). -----------------------------
Total
-----------------------------

(in words Rupees _____________________________ only)

Date

Affix revenue
Label here

for and on behalf of foreman

…………………………………………………………………………………………………

Note: Strike out / delete whatever is not applicable. Insert the designation(s) as may
be appropriate to the applicant.
 36

FORM – XVII
(See Section 64 and Rule 45)

APPLICATION FOR REFERENCE OF A DISPUTE TO ARBITRATION BEFORE

THE REGISTRAR / ADDITIONAL / JOINT / DEPUTY ASSISTANT REGISTRAR.

1. Name : Age :
Occupation : Address :
2. Name : Age :
Disputants
Occupation : Address :
3. Name : Age :
Occupation : Address :

Versus

1. Name : Age :
Occupation : Address :
2. Name : Age :
Opponents
Occupation : Address :
3. Name : Age :
Occupation : Address :

(Here give full particulars of the claim or the facts of the case constituting the
cause of action when it arose etc.,)

The disputant / disputants prays / pray as under:-

-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------

In support of the above claim or relief sought I / We enclose documents and

papers as per the list annexed hereto.

Date : Signed ______________

Disputant / Disputants.
 37

I / We ___________Disputant / disputants declare that the facts stated above

are true to the best of my / our knowledge and belief.

Date : Signed (1) :

(2) : Disputants
(3) :

Filed in the office of ___________ on ________ 200__.

NOTE :
1. In case there are more disputants or opponents, their names,
addresses, age and occupations should also be mentioned.
2. In disputes relating to monetary claims, the disputants should state
the precise amount claimed but where this cannot be exactly
ascertained the disputants shall state the appropriate amount
claimed.
3. When the disputant – foreman is a company / cooperative society
or a partnership firm, a copy of the resolution of its Board of
Directors or as the case may be, Managing Committee shall
accompany the application.
 38

FORM – XVIII
(See Section 71 and Rule 54)

PROCLAMATION TO BE ISSUED AT THE TIME OF THE ISSUE OF A

CERTIFICATE

A. In the case of immovable property:

Whereas __________ (Judgement-Creditor) has obtained an Award under

Section 69 of the Chit Funds Act, 1982 (Central Act No. 40 of 1982) for an amount of
Rs. _________ against ___________ (Judgement-Debtor) and proposes to execute
the same by sale of the under mentioned property of the said judgement-debtor and
whereas the said Judgement-Creditor has obtained a certificate dated
_____________ for execution of the award under Section 71, of the said Act.

Notice is hereby given that any private transfer or delivery of, or encumbrance
or charge on, the property made or created after the issue of the certificate shall be
null and void against the said Judgement-creditor under Section 72 of the Act
aforesaid.

DESCRIPTION OF THE PROPERTY

Date of Names of the Survey Name Area Assessment Other R
award parties number of the or other description E
or order against whom or Village taxes of the M
award or House town property A
order has Number etc., such as R
been passed boundaries K
and a etc., S
certificate U/s
71 has been
issued
1 2 3 4 5 6 7 8

The Notice shall be proclaimed at some place on or adjacent to such property

by beat of drum or other customary mode, and a copy of the said notice shall be
fixed on a conspicuous part of the property and upon a conspicuous part of the
 39

village chavadi and also where the property is land paying revenue to the State
Government in the office of the Collector of the District in which the land is situated.

Place.
Date. Registrar of Chits

B. In the case of movable property, a similar notice may be given with necessary
changes as to the description of the property. A copy of the notice shall be delivered
to the judgement-debtor.
 40

FORM – XIX
(See Rule 56(5))
CERTIFICATE FOR TRANSFER OF PROPERTY

In the case of immovable property:

Where in execution of the award made under Section 69, of the Chit Funds
Act, 1982 (Central Act. No. 40 of 1982) in favour of ___________ (hereinafter
referred to as the Judgement Creditor) an order was passed on the ______ day of
____ 200__ for sale of the under mentioned property of the person or persons
(debtor or debtors).

And whereas the Court / the Collector / Registrar is satisfied that the said
property cannot be sold for want of buyers;

It is hereby ordered that the rights, title and interest of the debtor in the said
property shall vest in the said judgement-creditor and shall be delivered to him
subject to the terms and conditions laid down in the schedule hereto annexed.

DESCRIPTION OF THE PROPERTY

Survey No. Area and Nature of right title Details of
assessment and interest of the Encumbrances to
defaulter which property is
subject

THE SCHEDULE

The said property is transferred to the Judgement-creditor in full / partial

satisfaction of the amount due to him from the debtor.

Given under my hand and seal of the Court / Collector / Registrar this _____
day of ______________200___.

Court / Collector / Registrar of Chits.

 41

In the case of movable property:

(The form shall be similar with necessary changes as regards the description
and the delivery of the property).
 42

FORM – XX
(See clause(c) of Rule 2)
FORM OF LETTER OF AUTHORITY

I, ________________ who / am / is _____________ of M/s ____________________

(name ) (Designation)
being is foreman of the chit series ______________ registered under Registration
No. ___________ as my authorized representative to attend on my / our / behalf in
the matters connected with the above chit to produce accounts and documents and
to receive on my / our / behalf any notice or document issued and to take all
necessary steps in the matter.

I / We agree to ratify all acts done by the said Shri ________________ in

pursuance of this authority.

Date : Signature :
Place : Status :

FORM – XXI
(See Rule 28(2))

Name of the Foreman _________________

i) Office where the bye-laws of the chit (i) Registration No.
and year of the bye-laws of the chit.
ii) Date of which the balance sheet was (ii) Name of the Foreman
prepared.
iii) No. of instalments conducted till date (iii) Chit amounts
of balance sheet
(iv) No. of instalments.
 43

I – RECEIPTS AND EXPENDITURE

Receipt Current Total Expenditure Current Total
Year including year including
previous previous
years years
1 2 3 4 5 6
Rs. Rs. Rs. Rs.

1. Subscription paid by the prized and 1. Prize amounts disbursed to prized

non-prized subscribers. subscribers.
2. Receipts under dividend 2. Interest paid to subscribers
3. Interest realized from the subscribers 3. Amounts paid to defaulter non-prized
subscribers.
4. Contributions by substituted of 4. Amount contributed by foreman for
assignee non-prized subscribers, in payment of the prize amount.
respect of dues of defaulters.
5. Any other amount received from 5. Foreman’s commission.
subscribers.
6. Amount contributed by the foreman for 6. Amounts on account of interest
payment of prize amount. realized for delayed payments and
forfeited dividend.
7. Interest accrued from investments 7. Dividend paid
8. Other items (details to be annexed) 8. Sinking fund
9. Investments withdrawn 9. Other items (details to be annexed)

10. Investments made

Grand Total : Grand Total :

II - STATEMENT OF ASSETS AND LIABILITIES

S. No. Assets Rs. Ps. Liabilities Rs. Ps.
1. Amounts due on account of arrears of 1. Amounts paid by non-prized
subscription due from prized subscribers (including dividend)
subscribers.
2. Amounts due from the subscribers 2. Amounts due to non-prized
including the subscriptions defaulter subscribers
3. Interest due from defaulter subscribers 3. Arrears of prize amount due to
prized subscribers
4. Investments in Bank (including interest 4. Arrears of prize amount due to
thereon) prized subscribers
5. Other items (details to be annexed) 5. Other items (details to be annexed)
6. Sinking fund 6. Sinking fund

Total Total
 44

III - DETAILS OF INVESTMENTS

Rs. Ps.
1. Investment made on account of the
failure on the part of prized subscribers
to receive the prized amount due to
them
2. Investment made on account of
lumpsum collection made from
defaulter prized subscriber.
3. Amount deposited for payment to non-
prized defaulter subscribers
4. Investments on account of other items
of receipts of the chit (details to be
annexed)

Total

IV – ASSESSMENT OF VALUE OF INVESTMENT

1. Investment in Pass book account number.
2. * Amount due from the future instalments of the chit as per bonds, etc.,
obtained for _______ instalments of the chit including the arrears of Rs. ______ due
on account of defaulting instalments from defaulters.
3. Balance of contributions due from the foreman on account of prize amount
received by him.

Note : To facilitate audit of balance sheets, the following statements of details should
be annexed by the foreman to the balance sheet.
i) Statement of details of receipts and expenditure for each instalments.
ii) Of disbursement.
iii) Of the prize amount in respect of each instalment and
iv) Statement of details of arrears due on the date of the preparation of the
balance sheet from the prized and non-prized subscribers.
----------------------------------------------------------------------------------------------------------------
* Particulars of documents to be entered here.

Security offered by the foreman, hypothecation bonds, etc., executed under

Section 20, and hypothecation bonds etc., obtained from the prized subscribers
under Section 31 of the Act.
 45

V – CERTIFICATE BY FOREMAN

I certify that the above accounts have been prepared correctly and that they
contain a true and complete statement of the affairs of the chit.

Date : Name and signature of foreman

VI – CERTIFICATE BY AUDITOR

Certified that I have examined the chit books and records maintained in
respect of the chit __________ the byelaws of which have been registered in
_________ as number ___200___ conducted by foreman __________ and have
verified the entries in the accounts with the books. The accounts are drawn up in
conformity with the provisions of the Chit Funds Act, 1982 and the Rules framed
thereunder.

Date : Name and Signature of the Auditor