The Prize Chits and Money Circulation Schemes Rules, 1980

Home/ Act and Rules/ The Prize Chits and Money Circulation Schemes (Banking Delhi) Rules, 1980

Short title and commencement-(i) These rules may be called the Prize Chits and Money Circulation Schemes (banning) (Delhi) Rules, 1980.
(ii) They shall come into force on the date of their publication in the Official Gazette.

Definitions- In these rules, unless the context otherwise requires_

  • "Act"means the Prize Chits and Money Circulation Schemes (Banning) Act,1978 (Central Act No. 43 of 1978)
  • “Administrator” means the Administrator of the Union Territory of Delhi appointed by the President under Article 239 of the Constitution.
  • ”Authorized Officer” means the Registrar, Chit Fund Delhi administration , Delhi or such other officer as may be specifically authorized by the Administration in this behalf by a notification in the official Gazette for the purpose of Section 12.
  • “Form” means a form specified I the Schedules to these rules.
  • “Promoter” means a person conducting a prize chit or money circulation scheme at the commencement of the Act and desiring to continue such chit of schemes pursuant to sub section (1) of Section 12 for winding up the business relating to such chit or schemes.
  • “Schedule “ means the Schedule to these rules.
  • “Schemes” means a money circulation scheme of the case may be , a prize chit as defined in the clauses ( c ) and (e) respectively of Section 2.
  • “Section” means a section of the Act.
  • “Subscriber” "means a subscriber to a prized chit or money circulation scheme.
  • “Office of the Reserve Bank” means the office of the Reserve Bank specified in rule 10.

words and expressions used in these rules but not defined shall have the meaning respectively assigned to them in the act.

Application for being notified Under section 11(i) - A Charitable or educational institution desiring to be notified under clause (d) of Section 11 shall make an application in that behalf in duplicate, to the authorized office in the Form specified in the first schedule. To copies of such application shall, simultaneously, be forwarded by such institution to the Office of the Reserve Bank.

(ii) The authorized officer shall forward one of two copies of the application received by him to the Administrator along with his comments /recommendations thereon.

(iii) On receipt of a copy of the application from the authorized officer, the administrator may, in consultation with the Reserve Bank notified such institution or refuse to notify such institution having regard to the facts and circumstances of each case, after giving due reasons for the same.

Particulars of scheme and winding up plans to be furnished by the promoter- (i) A statement of particulars of the schemes be conducted as on the date of commencement of the Act, together with a detailed plan for the winding up of the business of such schemes shall as required by the first proviso to sub section (1) of the section 12 be furnished in duplicate to the promoter to the authorized officer before 30th June, 1980 in Form I of second Schedule. Two copies of such statement together with such plan shall, simultaneously, be forwarded by the promoter to the office of the Reserve Bank.

(ii) On receipt of the statement of particulars and the winding up plan referred to in sub rule (I ) a written acknowledgement in token of the receipt thereof shall be issued by the authorized officer to the promoter.

(iii) The authorized officer shall maintain or cause to be maintained a register of promoters furnishing the statement of particulars and the winding up plans furnished under sub rule (1).


Extension of time for winding up of the schemes -If for any reason, the promoter is unable to windup the existing business of the schemes on or before the date specified by him in the winding up plan submitted by him under Rule 4 or such other date as may be approved by the Administrator, and is desirous of continuing it for its beneficial winding up beyond the specified date or the approved date as the case may be ,he shall not later than four months before such specified date or such approved date, submit to the authorized officer, an application in duplicate in Form –II of the Second Schedule giving full details of such business which needs extension of time , the period for which the extension is sought and the reasons why such business cannot be finally wound up within the specified date or such approved date. Two copies of application shall, simultaneously be forwarded by the promoter to the office of the Reserve Bank.

Procedure for the disposal of the Plan or applications-(I) On receipt of the application containing the statement of particulars and the winding up plan submitted by the promoter under sub rule (1) of Rule 4 or as the case may be of the application for extension of time submitted under Rule 5, Administrator shall cause it to be examined by the authorized officer or such other officer as it may deemed fit.

(ii) On receipt of the comments of such officer and after consulting the Reserve Bank on the application for the winding up of the business of the existing schemes or as the case may be, on the application for extension of time for the winding up of such business, the Administrator may approve or disapprove the application for the proposed winding up of such business or approve it with such notification as deems fit and may grant extension of time for such period as may be considered desirable in the public interest and subject such terms and conditions may be deemed necessary or expedient (including the furnishing of security by the promoter for the repayment of the amounts due to the subscribers to the scheme) or refuse to grant extension of time :

Provided that no order modifying or rejecting the application containing the winding up plan or modifying or rejecting the application for extension of time for the winding up of the existing scheme shall be passed without giving to the promoter an opportunity of being heard,

(iii) The Administrator shall maintain or cause to be maintained by the authorized officer, a register specifying the particulars such as the names of the promoters, the statement of particulars and winding up plans submitted, the period for which extension of time has been granted, or the application for extension of time which have been rejected

Promoter to be informed - The Administrator shall intimate to the promoter the particulars of the terms and conditions subject to which the winding up plan has been approved or extension of time granted or its refusal to grant further extension of time . A gist of modification, if any, in the winding up plan or the extension of time, if any, granted or rejected shall be modified in the official gazette and particulars thereof shall, simultaneously, be advised by the Administrator to the office of the Reserve Bank.

Consequences of the approval of the plan or grant of extension of time to close the business of the schemes - During the period of which a winding up plan has been approved or the extension of time granted to winding up the business of scheme pursuant to any order passed by the Administrator, Under sub rule (ii) of Rule 6, is in force:

(a) The subscriber may remit money to be promoter in accordance with the winding up plan;

(b) The promoter may receive monies from the subscribers and may also distribute prizes by way of cash or otherwise to the subscribers in accordance with the winding up plan; and

(c) The subscriber may receive monies from the promoter in accordance with the winding up plan due to them under the schemes.

Refund of monies or subscriptions collected by the promoter – Where a promoter commits default in furnishing winding up plans as required by sub Rule (1) of Rule 4, he shall refund within a period of six months from the date of such default. The monies and subscriptions collected till the date of default.

Miscellaneous - For the purpose of this rule , the office of the Reserve Bank shall mean the office of the Deputy Chief officer, Department of Non Banking Companies, Reserve Bank of India, New Delhi, regional office, 6, Parliament Street, New Delhi –110001.
FIRST SCHELDULE
  (See rule (3)

 

(Form of application to be used by the charitable, educational institutions for going notified under clause (d) of Section 11 of the Act)


        From      Place:………….Date:……….. To Dear Sir,
We, the undersigned, Sarvshri_________ and________ President and Secretary respectively of the ___________@ do hereby apply in terms of Rule 3 of the Prize Chits and Money Circulation Schemes (Banning) (Delhi) Rules, 1980 for the said institution being notified under clause (d) of section 11 of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 enable it to promote/conduct the scheme(s). Full particulars regarding the institution, scheme(s) etc., are given in the Statement of particulars forwarded herewith.

Yours faithfully, President . (Secretary) for and on behalf of----@ @ here enter the name of the applicant institution.

STATEMENT OF PARTICULARS

  •  
  1. Name and address of the charitable/educational institution.
  2. Constitution i.e. whether incorporated as company/cooperative society or register or unregistered association of individuals (also state the provision of the Act under which incorporated/registered along with the date of incorporation).
  3. Names and address of the branches/officers, 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 Bye laws /Rules, regulating the activities of the institution.)
  5. Names, occupations and residential addresses of the office bearers of the institution.
  6. Names of the Bankers and their addresses.
  7. Names of the auditors and their addresses.
  8. Broad nature of the scheme being conducted or proposed to be conducted (enclosed or printed copies of the schemes and of the rules governing such schemes).
  9. Places where the schemes referred to in item 8 are being proposed to be conducted.
  10. How late the funds are collected by the promoter/conduct of the schemes proposed to be utilized to.
  11. Full particulars of such schemes as in the Annexure.
  12. Is the income of the institution exempt under any of the sub sections of section 10 of the Income Tax Act, 1961? If so, specify the provisions under which the income of the institution is so exempt.
  13. Are the donations made to the institutions recognized for the purpose of Section 80 (G) of the Income Tax Act,1961? (If so, a copy of the notification may be enclosed).
  14. Names and addresses of the associate institutions, if any.
  15. Broad nature of the activities of such associate institutions and of the schemes, if any, conducted by such institutions.
  16. Names, occupations and residential addresses of the office bearers of such associates institutions.
  17. I/We solemnly declare that the facts stated herein as also in the Annexure are true to the best of my /our knowledge, information and belief.

I/We certify that the particulars/information given herein, in so far as they pertain to the books and records of the ___________have been verified from such books and records and found to be correct and complete in all respects. Dated this ____________day of ___________1980 at_______
     
Notes- (i) If the space given against any of the item is inadequate for furnishing full particulars, the required information should be given in separate sheets indicating the cross references against the relative items of this statement.

II. A copy of each of the latest available auditor Balance Sheet and Profit & Loss Account as also a financial statement in the same proforma as on the date of the coming into operation of the Act duly certified by the auditors, should be attached.

ANNEXURE
 
        (Amounts in lakh of rupees) ------------------------------------------------------------------------------ 1 2  3  4   5  -----------------------------------------------------------------------------}
- S.No. Name of the Data of commence- date of maturity No. of members Scheme ment of the scheme of the scheme intended to be         Enrolled as per       t
he Scheme ------------------------------------------------------------------------------- 6  7   8  9  10 ------------------------------------------------------------------------------- N
o. of members Amount of liability Amt actually Outstanding Are you subscribers enrolled and by way of prizes, disbursed by liability who win prizes bound actually sub- if any,in cash or way of prizes an account to pay subscription scribing
kind offered  of disbursement till maturity of the   during the    of prizes scheme     currency of the   scheme ------------------------------------------------------------------------------- 11
12    13 ------------------------------------------------------------------------------- Does the scheme contemplate If the reply to the query Remarks refund of the amount paid in item 11 is in the affirmative,
by the subscribers to them, the amount of the total liability on maturity of the scheme? under each scheme on its maturity ------------------------------------------------------------------------------
Notes ( i ) Particulars to be given in this statement should relate to the lposition as on the 12th day of December, 1978 i.e. date of the coming into operation of the Act in the case of existing schemes, if any.
(ii) If any item is not applicable, the leter N.A. should be entered thereunder.
(iii) This statement should be authenticated by the authorized officials of the insitutions and countersigned by its auditors.


        SECOND SCHEDULE-FORMS
FORMS-1
(See Rule4(1))

(Form for furnishing particulars of the Scheme(s) and winding up plan)

        From      Place:………….Date:……….. To Dear Sir,
We, the undersigned, Sarvshri_______ and _____President and Secretary respectively of the _______ @ forward herewith a statement of particulars in the prescribed form, together with a winding up plan as required by the first proviso to Section 12(1) of the Prize Chits and Money Circulation Schemes (Banning ) Act,1978 read with Rule 4(1) of the Prize Chits and Money Circulation Schemes (Banning) (Delhi) Rules, 1980.

Please acknowledge receipt.
Yours faithfully,
President
Secretary For and on behalf of………@

@ Here enter the name of the applicant Institution.

Notes: (i) Necessary changes regarding the designation etc., of the office bearers may be made wherever necessary. Strike out whatever words are not applicable.

(ii) This form as well as its enclosures should be forwarded to the authorized officer in duplicate. Two copies each thereof should be forwarded simultaneously to the Deputy Chief Officer, Reserve Bank of India, Department of Non-Banking Companies, New Delhi, Regional Office, 6-Parliament Street, New Delhi-110001.


STATEMENT OF PARTICULARS

  1. Name and address of the company/association of individuals/cooperative societies/partnership/sole proprietorship (Addresses 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-operative society or registered/unregistered association of individuals/partnership/sold proprietorship (Also specify the provisions of the Act under which incorporated/registered along with the date of incorporation).
  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 Bye-laws or Rules regulating the activities of the institution).
  5. Names , occupations and residential addresses of the directors or as the case may be , of the promoters/members of the Committee of management/partners etc.
  6. Names and residential addresses of the Chief Executive Officer and two other officers immediately next to him in the managerial set up.
  7. Names of the bankers and their addresses.
  8. Names of the auditors and their addresses.
  9. Broad nature of the schemes conducted (Enclose printed or type-written copy of the schemes and of the rules governing such schemes).
  10. Places where the scheme referred to in item 9 are being conducted.
  11. Full particulars of each scheme as in the Annexure to this statement.
  12. Names and addresses of the associate/Companies/co-operative societies/association of individuals/partnership/sole proprietorships.
  13. Names, occupations and residential addresses of the directors or as the case may be, of promoters/members of the committee of Manangement etc. , of the institution referred to in item 12.
  14. Broad nature of the type of business done by them and/or of the schemes conducted by them.
Top