Chapter II-Registration

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Delhi Chit Fund Rules, 2007    

Chapter II

REGISTRATION

3.Application for obtaining previous sanction for commencement or conduct of chit.-Every application for obtaining previous sanction of the State Government or the officer empowered by it in this behalf, for commencement or conduct of a chit shall be made by the foreman in Form I.

4.Communication of the previous sanction for the commencement or conduct of a chit.-The previous sanction for the commencement or conduct of a chit shall be communicated in Form II.

5.Refusal to previous sanction for the commencement or conduct of chit.-

  1. Where previous sanction for the commencement or conduct of a chit is refused, the reasons for such refusal shall be recorded in writing and a copy thereof shall be communicated to the foreman.
  2. Before refusing such sanction, the State Government or the officer empowered in this behalf, shall issue a notice, by registered post, to the foreman, calling upon him to show cause within a period of fourteen days of issue of such notice, as to why previous sanction be not refused.
  3. Where, the ground for the proposed refusal of such previous sanction is default in the payment of fees or the filing of any statement or record required to be paid or filed under the Act, or these rules, the State Government or the officer empowered in this behalf, may, after hearing the foreman and being satisfied that the default has occurred due to reasons beyond the control of the foreman or due to other bona-fide reasons, condone the said default provided that the foreman has paid the fees or filed the necessary documents on or before the date of such hearing.

6.Application for registration of chit agreement.-Every application for the registration of a chit agreement shall be in Form III.

7.Chit agreement.-The chit agreement of every chit commenced under the Act shall be in duplicate and shall be signed by each of the subscribers or by any person authorised by him in writing and the foreman and attested by, at least, two witnesses and it shall contain the particulars as prescribed under section 6 of the Act.

8.Endorsement of registration of a chit agreement.-The endorsement of registration of a chit agreement by the Registrar shall be in Form IV.

9.Registration number of chit agreement.-Every chit agreement registered under the Act shall be numbered serially by the Registrar in separate series for each calendar year.

10.Refusal to register a chit agreement.-

  1. If the Registrar refuses to register a chit agreement, he shall record the reasons for such refusal in writing and communicate a copy of the order to the foreman.
  2. Before refusing such registration, the Registrar shall issue a notice, by registered post, to the foreman calling upon him to show cause within a period of fourteen days of issue of such notice as to why the registration be not refused.
  3. Where it is proposed to refuse registration of a chit agreement for default in the payment of fees or the filing of any statement or record required to be paid or filed under the Act or these rules, the Registrar shall condone the said default, if he is satisfied on hearing the foreman that the default has occurred due to reasons beyond the control of the foreman or due to other bona-fide reasons, provided that the foreman has paid the fees or filed the necessary documents on or before the date of such hearing.

11.Application for appropriation of any sum from the reserve fund.-Every application for obtaining the prior approval of the Registrar for appropriation by a company of any sum from the reserve fund shall be in Form V.

12.Declaration to be filed about subscriptions to all tickets of a chit.- Every declaration under sub-section (1) of section 9 of the Act, filed by a foreman after all tickets in a chit specified in the chit agreement have been fully subscribed shall be in Form VI.

13.Form of certificate of commencement of chit.- The certificate of commencement of a chit granted to the foreman shall be in Form VII.

14.Form of certificate about furnishing a copy of the chit agreement to the subscribers of a chit.-The certificate by the foreman about having furnished a copy of the chit agreement to every subscriber of a chit, under section 10 of the Act, filed with the Registrar, shall be in Form VIII.

15.Alteration or addition in, or cancellation of, a chit agreement.-

  1.  No alteration or addition in, or cancellation of, any chit agreement shall have effect unless such alteration or addition or cancellation, as the case may be, has the consent in writing of the foreman and all the subscribers to the chit and is also registered with the Registrar.  
  2. The foreman shall submit any alteration or addition in or cancellation of, any chit agreement, in duplicate to the Registrar, duly signed and attested by, at least, two witnesses, along with the true copy of the written consent for carrying out the addition, alteration or cancellation for registration.An application to file an alteration or addition in or cancellation of, any chit agreement shall be dealt with in the same manner as an application for filing of the chit agreement.
  3. An alteration or addition in, or cancellation of, any chit agreement shall not take effect from a date earlier than the date of such registration of the alteration or addition or cancellation, as the case may be unless otherwise ordered by the Registrar: Provided that the Registrar shall not give effect to such alteration or addition or cancellation from a date earlier than the date of application for registration of the alteration or addition in, or cancellation of, any chit agreement, as the case may be.

16.Notice of conduct of chit to chit subscribers.-Every notice to be given by a foreman to the subscribers in a chit under section 16 shall be in Form IX.It shall be sent to each subscriber under certificate of posting, or by hand delivery, or in such manner as prescribed in the chit agreement, and shall also be exhibited on the notice board of the office of the foreman.

17.Minutes of proceedings. -The minutes of proceedings of every draw shall, in addition to the particulars specified in sub-section (2) of section 17,contain full particulars of the following points, namely.-

  1. particulars of deposit, if any, of the prize amount under sub-section(2) of section 22, since the date of the previous draw;
  2. particulars of deposit, if any, of money, under sub-section (1) of section 22, sub-section (1) of section 30 and sub-section (4) of section 33, since the date of the previous draw;
  3. amount withdrawn from the approved bank (the name of the bank to be specified) and the purpose for which the amount was withdrawn since the date of the previous draw;
  4. how the prized subscriber was ascertained according to the terms of the chit agreement and particulars of tickets and prize amount. If the ascertainment of the prized subscriber related to a fraction of a ticket, particulars in respect of each such fraction shall be entered;
  5. full particulars of the commission, remuneration or for meeting the expenses of the chit, paid to the Foreman and the amount of dividend assigned to each subscriber;
  6. names of subscribers or their authorised agents, who bid at the draw, their ticket numbers and signatures.
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