Chit Funds Act, 1982 alongwith Rules

The Chit Funds Act, 1982, alongwith the Chit Funds Rules, serves as India’s central legislation governing the operation, registration, and administration of chit fund schemes. Designed to ensure financial discipline, consumer protection, and transparency, the Act regulates the relationship between foremen, subscribers, and regulatory authorities. It defines the legal procedures for starting and conducting chit businesses, security deposits, auditing, default management, and penal provisions for misconduct or mismanagement.