Vidhi Codex

Bare Act

The Goa, Daman and Diu Chit Funds Act, 1973

Finance197370 sections10 chapters

The Goa, Daman and Diu Chit Funds Act, 1973 regulates the operations of traditional savings and credit schemes called chit funds within this Indian Union territory. It applies to fund organizers, known as foremen, and all participating subscribers. This legislation matters because it protects the savings of everyday citizens from financial fraud and mismanagement. The law enforces transparency by requiring organizers to register their rules, file formal agreements with the government, deposit security guarantees, and maintain audited books. Ultimately, it ensures that prize payouts are properly distributed and that organizers are held legally accountable to all participants in the fund.

Start reading →Read full ActSections

Chapter 1 Chapter 1 →

  1. 1Short title, extent and commencement.
  2. 2Definitions.

Chapter II Chapter II →

  1. 3Registration of bye-laws.
  2. 4Prohibition of invitation for subscription to chit of which bye-laws have not been registered
  3. 5Form of chit agreement.
  4. 6Filing of chit agreement.
  5. 7Commencement of chit business.
  6. 8Copies of bye-laws and chit agreement to be given to subscribers.
  7. 9Alteration of chit agreement. (1) The chit agreement shall not be altered, added
  8. 10Minutes of proceedings.
  9. 11Copy of minutes to be filed with Registrar— Every foreman shall within the
  10. 12Security to be given by foreman. (1) For the proper conduct of the chit, every
  11. 13Rights of foreman.
  12. 14Duties of foreman.
  13. 15Registers and books of account.
  14. 16Balance sheet.
  15. 17Liability of foreman to the Subscribers
  16. 18Withdrawal of foreman.

Chapter IV Chapter IV →

  1. 19Non-prized subscribers to pay subscription and get receipt.
  2. 20Removal of defaulting subscribers.
  3. 21Substitution
  4. 22Amount due to defaulting subscriber how dealt with.
  5. 23How meetings to be held.

Chapter V Chapter V →

  1. 24Prized subscribers to give security.
  2. 25Prized subscriber to pay the subscriptions regularly.
  3. 26Foreman to demand future subscriptions by written notice. (1) A foreman

Chapter VI Chapter VI →

  1. 27Restrictions on transfer of right of foreman.
  2. 28Transfer of non-prized subscriber's rights to be in writing. Every transfer by
  3. 29Recognition of transfer by the foreman.
  4. 30Entry of transferee's name in the book. Every transfer made under section 27

Chapter VII Chapter VII →

  1. 31Provisions for continuation of chit in certain cases.
  2. 32Termination of chit.
  3. 33Copy of assent or consent to be filed with the Registrar.
  4. 34Refund of non-prized subscribers contributions.
  5. 35Subscriber's dues to be first charge on chit assets.

Chapter VIII Chapter VIII →

  1. 36Foreman to allow subscriber to examine chit records. Every foreman shall.
  2. 37Preservation of chit records by foreman.
  3. 38Inspection of Chit Book and other records.

Chapter IX Chapter IX →

  1. 39When Chit may be wound up.
  2. 40Winding up application.
  3. 41Insolvency or liquidation a bar to winding up proceedings.
  4. 42Commencement and effect of winding up order.
  5. 43Injunction order.
  6. 44Powers of court on hearing application.
  7. 45Chit assets to vest in court for distribution. On the making of an order for the
  8. 46Suits stayed in winding up orders.
  9. 47Copy of winding up order to be filed with Registrar.
  10. 48Stay of winding up proceedings on insolvency of foreman.
  11. 49Compensation for frivolous or vexatious application.
  12. 50Right of appeal.
  13. 51Limitation.

Chapter X Chapter X →

  1. 52Appointment of Director of Chits, Inspecting Officers, Registrars and Chit
  2. 53Inspection of document in the Registrar's Office.
  3. 54Levy of fees.

Chapter XI Chapter XI →

  1. 55Appeal. (1) Any foreman aggrieved by an order of the Registrar
  2. 56Power of Registrar to condone delay in certain cases.
  3. 57Penalties.
  4. 58Cognizance of offences. No court inferior to that of Judicial Magistrate of the
  5. 59Application of fines.
  6. 60Power to enter and search any place and to seize documents etc.
  7. 61Payment to be evidenced by document.
  8. 62Interest at more than twelve per cent not to be allowed.
  9. 63Power of court to grant relief in certain cases.
  10. 64Power to make rules.
  11. 65Recovery of amounts due from a foreman.
  12. 66Act not to apply to certain chits.
  13. 67Power to exempt.
  14. 68Stamp duty.
  15. 69Repeal and saving.

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