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Chit fund limited

In Margadasrhi Chit fund limited I enrolled for 5Lakh Chit with the tenure of 40 Months. As individual I felt I will get benefit of profit. Now in total for 40 Months I had paid amount of Rs. 472000 from my pocket ( dividend not included -dividen amount is Rs.16000) with out delay and with out fine for last 40 months . At the end of the day of 5 Lakh chit, componey commission Rs. 25000 +GST tax. Hence, finally I got 4,70,000. Now i lost amount of Rs. 2000 what ever i paid from my pocket. As a Chit componey and as customer I need to get benefit of profit but I am getting loose of Rs. 2000. Can I challenge this in the consumer or civil court.

( East Godavari, Andhra Pradesh )

1 month ago

Reply

Dear Client,
Chit Funds are registered by State Governments under the Chit Funds Act, 1982 administered by the Ministry of Finance but with responsibilities of implementation resting with the States. Unless a chit-fund business is registered following the provision of the Chit Funds Act, 1982 and the Companies Act, 2013 and the rules made thereunder, one can not start or run a business of chit-fund. As per Section 64(1) of the Chit Funds Act, 1982, any dispute touching the management of a chit business shall be referred by any of the parties to the dispute, to the Registrar for arbitration if each party thereto is one or the other. Under Sec.66(1) of the Act, if the Registrar is satisfied that any matter referred to him or brought to his notice is a dispute within the meaning of section 64, he shall, subject to such rules as may be prescribed, settle the dispute himself, or refer it for disposal to a person appointed by him. The Registrar hearing a dispute under section 66, shall, in addition to the powers conferred on him under that section, have the same powers as are vested in a Civil Court while trying a suit under the Code of Civil Procedure, 1908. So, given the provision prescribed under the Chit Funds Act for redressal of dispute through arbitration, you can apply to the Registrar of Chit Funds to resolve the grievance through arbitration under Section 64 of the Act failing which you can file a civil suit against the chit fund company seeking appropriate relief in the matter. If required, hire an Advocate to navigate the issue in the right way.