I want advice on price chit and money circulation banning act 1978
5 years ago
there is a system where you need to pay rs 2200 as help, donation, charity or beg to 6 people and you get enrolled in this system after that you will have to find 4 people to pay rs 2200 each, if these 4 people pay rs 2200 each then you can take back your investment of rs 2200 and rest of the amount will get distributed among 6 people as it keeps going at the last level you will receive a grand total of rs 57 Lacs as help, donation, charity or beg from the people....as per prize chit and money circulation banning act 1978 this is illegal...my question is, is there any way to make it legal ? because I seriously want to improve people\'s financial health... so please share your valuable opinions
This is illegal money circulation prohibited by Reserve bank of India(RBI).
Shanti Ranjan Behera
Advocate
ARPIT BATRA
Responded 5 years ago
Deepak Yashwantrao Bade
Responded 5 years ago
Anonymous
Replied 5 years ago
Is there any way to make it legal?
ROBERT D ROZARIO
Responded 5 years ago
Anonymous
Replied 5 years ago
Can it be made legal?
ROBERT D ROZARIO
Replied 5 years ago
The chit funds are supposed to be registered under Chit Funds Act 1982. An unregistered chit funds depositing money shall be considered as fraud. Under this Act, the chit fund businesses can be registered and regulated only by the respective State Governments. Regulator of chit funds is the Registrar of Chits appointed by respective state governments under Section 61 of Chit Funds Act. Powers of adjudication vest in the Registrar and the state government concerned is the Appellate authority. In case of failure of a chit fund business, the responsibility for winding up such a business also vests with the respective State Governments. Moreover, the Prize chits and money circulation schemes are illegal and are banned under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. Powers of investigation under this Act are vested with the concerned state police authorities.
It cannot be made legal but instead you can terminate as a chit fund company by taking licenses from the concerned.
Anonymous
Replied 5 years ago
sir, as per my knowledge money circulation is banned because only top people make money and those who are at bottom lose their money....but what if I create a system where no one will lose their money so is it still illegal?
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