Release of FDR

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As soon as a chit group commenced under the Madras Chit Funds Act, 1961 is terminated and all the payments have been made to the subscribers, Departmental procedure requires the company to file the following documents for the release of security:

i) Form for release of security under Rule 22(1).


ii) Affidavit duly attested by the notary public alongwith notary stamps worth Rs.3/-


iii) Bank certificate regarding clearance of payments made to the subscribers in r/o. last 5 auctions, and related documents.


iv) List of transfers of subscribers.


v) Detailed list of payments in the following manner:

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Auction No.    Name of subscriber   Ticket No.     Date of auction
-------------------------------------------------------- ------------------------------------------------
1                         2                             3                         4
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Amount        Ch.No.           Date of issue             Date of              Name
                                           of cheque           enchashment      of the Bank
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5                         6                                7                              8                    9
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vi) Last Balance Sheet.

vii) In case of non-functional company, the Registrar Chit Fund, for being satisfied that payment to all the subscribers has been released, may seek confirmation from the subscribers regarding no dues from the company.

The Registrar, shall, after being satisfied that all the requirements have been complied with, release the secure

Procedure for release of security furnished under section 20 of the Chit Funds Act,1982:

On termination of the chit, the foreman shall make an application to the Registrar for release of the security given by him. The application for release of security shall contain a declaration in the form of an affidavit, duly signed by the foreman and attested by a Notary Public, stating-

(i) that the claims of all the subscribers have been fully satisfied and nothing is due to them from the

company;

(ii) that the company shall be held responsible for any complaint or claim put forth by any subscriber of

the chit group in future;

(iii) that all dues payable by the foreman under the Act and these rules to the Registrar or any other officer

have been fully paid.

Procedure for release of security is enunciated in Rule 24 of Delhi Chit Funds Rules,

2007, is detailed below:

(1) (a) The Registrar may for the purpose of releasing the security under sub-section (5) of section 20 call upon the foreman to produce a copy duly certified to be a true copy of any register and books of accounts maintained by the foreman, a bank certificate regarding clearance of payments made to the subscribers(excluding the foreman) in respect of last five auctions, detailed list of payments made to all the subscribers and last balance sheet of the chit group. The Registrar shall exhibit a notice on his office notice board/website of the Department stating that the security is proposed to be released and that any person objecting to such release may file with the Registrar his statement of objections, if any, within fifteen days from the date of exhibition of such notice.

(b) If no objections are received within the period specified in the notice, the Registrar shall release the security.

(2) If any objections are received, the Registrar shall enquire into the objections summarily within one month after the date of expiry of the period specified in the notice referred to in sub-rule(1) (a) and record his decision in writing and send a copy thereof to the foreman and to the objector.

 

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