Section 13: Aggregate amount of chits.

The Chit Funds Act, 1982Central Act · Act 40 of 1982

(1) No foreman, other than a firm or other association of individuals or a company or co-operative society, shall commence or conduct chits, the aggregate [gross chit amount] of which at any time exceeds [rupees three lakh].

(2) Where the foreman is a firm or other association of individuals, the aggregate [gross chit amount] of the chits conducted by the firm or other association shall not at any time exceed,--

(a) where the number of partners of the firm or the individuals constituting the association is not less than four, a sum of rupees [rupees eighteen lakhs];

(b) in any other case, a sum calculated on the basis of [rupees three lakh] with respect to each such partner or individual.

(3) Where the foreman is a company or co-operative society, the aggregate [gross chit amount] of the chits conducted by it shall not at any time exceed ten times the net owned funds of the company or the co-operative society, as the case may be.

Explanation.-- For the purposes of this sub-section, "net owned funds" shall mean the aggregate of the paid-up capital and free reserves as disclosed in the last audited balance sheet of the company or cooperative society, as reduced by the amount of accumulated balance of loss, deferred revenue, expenditure and other intangible assets, if any, as disclosed in the said balance-sheet.

Where this provision sits

Act	The Chit Funds Act, 1982
Section	13
Marginal note	Aggregate amount of chits.
Jurisdiction	Central
Status	In force as published by the source

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

substituted, Act 41 of 2019. . Subs. by Act 41 of 2019, s. 3, for "chit amount" (w.e.f. 1-1-2020).
substituted. . Subs. by s. 5, ibid., "rupees one lakh" (w.e.f. 01-10-2020).
substituted. . Subs. by s. 5, ibid., for, "rupees six lakhs" (w.e.f. 01-01-2020).

Find the provision, not just read it

The full text above is free, and it stays free. What a free CourtMesh account adds is everything you cannot do by reading one page at a time:

Search 49,000+ Central and State enactments by what a provision says, not by its number
Jump from any section to every judgment that has applied it
Search 300 million+ Indian court records alongside the statute
Ask a research agent to find and read the case law on a provision for you

Free account. No card. About a minute to create.

Create a free account

Need this as data, not as a page? The Chit Funds Act, 1982 is one of 49,000+ enactments on CourtMesh. The Indian court cases API serves the case law that cites these provisions over JSON, with API documentation and plans and pricing. See also the judgment library.