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Aggregate amount of chits


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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 chit amount of which at any time exceeds 

1 [twenty-five thousand rupees]. 

(2) Where the foreman is a firm or other association of individuals, the aggregate 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 2 [one lakh]; 

(b) in any other case, a sum calculated on the basis of 1 [twenty-five thousand rupees] with respect to each such partner or individual. 

(3) Where the foreman is a company or co-operative society, the aggregate 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.



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