चिट फंड विभाग
Chapter V
FURNISHING OF SECURITY
14. Proposal for giving a security--
(1) Every proposal for giving a security under section 12 shall be embodied in an application in Form CF V.
(2) Every application by a foreman proposing to give immovable property as security for the conduct or a chit shall clearly state correct and complete particulars regarding the property offered as security. Every such application shall be accompanied by :--
(i) an affidavit to the effect that the property is free from encumbrances; and
(ii) documents of title to the property.
15. Properties to be charged by way of security.-
(1) It the property proposed to be charged by way of security is movable property, it shall only be Government security or Government promissory Notes, National Saving Certificates, National plans having certificates National Defence Bonds, Gold Bonds or other similar and bonds issued by the Central Government from time to time. It shall be duly endorsed in favour of the Registrar.
(2) If the property proposed to be charged by way of security is movable Property other than the cash deposit, the foreman shall make all the necessary arrangement for their deposit with the Registrar, or with such bank or other agency as may be approved by the Registrar, ensuring that the property is deposited available as security for the proper conduct of the chit.
(3) It shall be open to the Registrar not to accept any security or immovable property, where such property is situated outside the Union Territory of Delhi.
(4) The Registrar or any officer empowered by him in this behalf shall, by inspection of the property and examination of records produce, satisfy himself to the sufficiency of the security for the realisation of at least one and a half times the chit amount.
16. Valuation of property.-
(1) Where any property which in the opinion of the Registrar requires valuation by a competent agency, the bank or any other authority appointed in this behalf by the Registrar with the profit approval of the Director of Chits shall estimate the value of such property and such valuation shall be final.
(2) Any fee or charge demanded for such valuation by such bank or authority shall be born by the foreman.
17. Compulsory registration of indenture of mortgage and trust -- The indenture of mortgage and trust executed by the foreman under section 12(1) (a) shall be duly registered under the Indian Registration Act, 1908 ( Central-Act XVI of 1908).
18. Substitutional of security. - A foreman may be permitted by the Registrar to offer substituted security in lieu of the one originally offered under section 12.
19. Sufficiency of security.--
(1) If the security offered is accepted as sufficient by the Registrar, he shall make a note of it on the application for furnishing security.
(2) Where the security offered is considered as insufficient the Registrar shall after giving the applicant an opportunity of being heard pass an order in writing to that effect and shall communicate his decision to the foreman.
20. Pledging of cash security or fixed deposited or Post Office Saving Bank Account.-- In case the security offered in cash or fixed deposit in an approved bank or Post Office Saving Bank Account, the pass book or the fixed depsit receipt, as the case may be shall be pledged with the Registrar. The Registrar shall thereupon intimate to the bank or the post office concerned, that the security amount shall not be disbursed except with the prior written sanction of the Registrar or of a competent court.
21. Approved Bank.-- For purpose of clause (1A) of section 2 the following-banks shall be "approved".
(1) The post office savings bank.
(2) The state Bank of India conducting business with in Delhi.
(3) The offices and branches in Delhi of the banks which are Scheduled bank within the meaning of section 2(e) of the Reserve Bank of India Act,1934 Central Act,2 of 1934.
(4) Such other banks as may be approved by the Administrator for Delhi from time, for purpose of these rules.
22.Release of property charge by way of security.--
(1) Where a foreman desire the release of the property charged by way of security or release of the cash security of the Government Securities as the case may be under sub section (4) of section 12, he shall make an application within ninety days of the termination of the chit.
(2) The Registrar may before passing an order of release, make or cause to be made such inquiries as he may deem necessary to satisfy himself that the requirement of sub-section 12(3) of section 12 have been fulfilled.
(3) In the event of the Registrar refusing to release the property charged by way of security or to order the release of cash security, he shall pass an order in writing to that effect and communicate the same to the foreman.
23. Method of valuation of grains by Registrar.-- In the event of subscription of a chit being21 by way of certain quantity of grain by instalments, the valuation for purpose of security under section 12 shall be based on the basis of average price of the grain prevailing in the wholesale market of Delhi during 7 days immediately proceeding of the chit agreement.