my grandfather is running a chit fund in unofficially. Am I in trouble
9 months ago
My mother's parents are living in next street and they are running a small unofficial chit fund group in the locality. Everyone in this unofficial chit fund group knows that my parents and me and my brother are his family. He is very old and he is still running this chit fund thing and I have tried to tell him to stop which he does not listen to. Even though he is just further circulating the profit he makes, he is telling people around that he is giving all the profits to his grandsons and daughter to make him seem like he is doing a good thing. We are not accepting any money from him but he is saying so. If at all he says he cant pay back to the chit fund group or if he dies, will me and my parents be in any trouble? what do I do to stop him or stop others from questioning us for their money? How to handle this legally? Me and my parents are very scared that something might happen and we will be stuck in a very bad financial problem because of him.
Yes, because no law and police may not prevent such mob to attack you and your family members if something went wrong. In chit fund business your grandfather may be honest but subscribers who have taken prized amounts fail to pay the subscriptions. Ask your grandfather to take blank cheques from the prized subscribers and also insist for other security.
You can ask your grandfather to legalise the chit fund business. You can apply with the relevant Chit Fund Registrar of the State to obtain registration.
Naveen Rajan
Replied 9 months ago
no. he is not wanting to legalize. he wants to run this way and he is also spreading word that he is giving all the profit he makes to me and my parents. but actually he is just using the profits to give it to people outside for interest again. now everyone thinks that we are gaining off of all their money and if he dies, we are scared everyone will demand everything back from us. We dont even know to whom he is giving the money to for interest. if all the people who needs to give back the money wont give, how will we handle the people demanding it from us? what if police comes for my parents and me and asks us to give back the money which we never got?
Marriage - married my sister with all the rituals
OBC NCL certificate
Marriage problem
Court marriage
I am staying in pagree room
