‣ “Foreman” means the person responsible for the performance of the Chit in accordance with the Chit Agreement and includes any person performing the duties of the Foreman in accordance with Section 39; ‣ The warranty provided by the foreman under subsection (1) or any warranty replaced under subsection (3) may not be seized pursuant to an order in council or otherwise until the Chit is terminated and the claims of all subscribers are fully satisfied. ‣ A foreman must, as soon as possible after receipt of the opening certificate referred to in Article 9(2), but at the latest at the time of the first drawing of the chit, provide each subscriber with a copy of the chit agreement, certified as an authentic copy. ‣ Each of these draws will be made in accordance with the provisions of the Chit Agreement and in the presence of at least two subscribers. ‣ The clerk shall keep a copy of the agreement and return the duplicate to the foremen indicating that the agreement has been registered: ‣ The foremen shall have their registered office or, where applicable, at the place or principal place of business of their enterprise or, if the foremen have a branch, establishment or any establishment for the purpose of carrying on business in a State other than the State, in which its registered office or principal place of business is situated, in that branch, department or secretariat for the activity carried on in that State — — Any provision of the memorandums, statutes, statutes, agreements or resolutions shall become null and void to the extent that it contravenes the provisions of this Act. Right to apply for the PSO number (previous sanction order). A Chit Corporation must obtain an OSP for each Chit Group it operates by paying the required deposits to the Registrar of Chits. (i) deposit with a licensed bank an amount equal to the chit amount in the name of the Registrar; for the purposes of this subsection, it is sufficient that the signature of each Subscriber is obtained in separate copies of the Agreement. If a chit is awarded to a subscriber, you must pay him the amount of the chit after receiving the sufficient guarantee prescribed in the approved statutes of that chit group. No guarantee from an estimated subscriber is required if they agree to pay all future installments in lump sums. ‣ Any enterprise that has a paid-up capital of less than the rupee and the lakh and that carries on business at the beginning of this Act must, before the expiry of a period of three years from the date of entry into force, increase its paid-up capital by at least one lakh: (3) The amount of the rebate referred to in subsection (1) (f) shall not exceed its percentage, the amount of chit. Explanation — A transaction is not a chit within the meaning of this clause if, in such a transaction, — (k) if the foreman is an individual, the manner in which a chit is prosecuted, if that person dies or becomes incredulous or otherwise incapable; — Where a person pursuing an economic activity opens a new head office in a State other than the State (hereinafter referred to as `the State of origin`) in which his registered office or the place or principal place of business of his undertaking is situated, the Registrar of the State in which that new establishment is opened may also exercise and exercise all the powers and tasks: the registrar of the home Member State may and do business in that new registered office. ‣ Each Chit agreement must be submitted by the foreman to the Registrar in duplicate. (i) on the expiry of the period laid down in the Agreement, provided that the payment of contributions to all participants has been made; or – Provided that, in the event that the foreman is a business, if a partner dies or becomes incredulous or otherwise unable to work, the chit is not considered terminated and the surviving partner or partners perform the chit unless otherwise provided in the Chit Agreement.

‣ No foreman, except a company or other association of individuals or a company or cooperative, may commence or perform chits the total amount of which exceeds 1 [twenty-five thousand rupees] at any time. (i) has been convicted of an offence under this Act or any other Act governing the business and has been sentenced to imprisonment for such an offence; or (j)the name of the licensed bank with which the foremen deposit funds in accordance with the provisions of this Act; ‣ Except with the general or special permission of the state government, no enterprise that does business may conduct any other business. (1) Each agreement must be duplicated and signed by each of the subscribers or by a person authorized by him in writing and the foreman and certified by at least two witnesses, and it must contain the following information: – A Chit Fund is a type of rotating savings system and credit association practiced in India. [1] Chit fund systems can be organized by financial institutions or informally among friends, relatives or neighbours. In some variants of Chit funds, savings are for a specific purpose. Chit funds are often microfinance organizations. [2] Different Chit funds operate in different ways; and there are also many fraudulent tactics practiced by many private companies. The basic necessity to perform a “chitty” is a group of people in need called subscribers. The foreman – the company or person who manages the chitty – brings these people together and manages the chitty.

The foreman is also the person responsible for collecting money from subscribers, conducting auctions and keeping subscriber records. He is paid monthly with a fixed amount (usually 5% of the gross amount) for his efforts; Besides the fact that the foreman has no special privileges, he is only a subscriber to the Chitty. The general chitty scheme can easily be noticed by a simple formula: premium * duration = gross amount, for example: 1000 * 50 = 50,000 / -. . . .