CHIT FUND FRAUD

Dear Client,
Chit Funds are registered by State Governments under the Chit Funds Act, 1982 and administered by the Ministry of Finance but with responsibilities of implementation resting with the States. Under 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. Hence, it is recommended to consult with an experienced Advocate to understand your rights and remedies to navigate the matter effectively.