(1)Save as otherwise provided by or under this Act, no person shall start or conduct any chit unless he has registered with the Register the general bye-laws under which different chit series are to be operated.(2)For the purpose of registration, the general bye-laws of the chit series signed by the foreman and attested by not less than two witnesses shall be filed With the Registrar.(3)The Registrar may -(a)on being satisfied that the general bye-laws filed with him under sub-section (2) are not inconsistent with the provisions of this Act or of the rules made thereunder and that the foreman is a proper person to conduct the chit, register the bye-laws and' issue to the foreman a certificate of registration: or(b)for reasons to be recorded, refuse the registration.(4)Without prejudice to the generality of his power under clause (ii) of sub-section (3) the Registrar shall refuse registration of any general bye-laws which do no provide for entering into an agreement in writing with the subscriber providing that the installments of subscription to the chit fund shall be monthly and the chit amount received every month from the subscribers shall be paid to the prized subscriber after deducting the discount which shall not exceed thirty per cent of the chit amount and that the discount shall be available for rateable distribution among the subscribers of the chit after payment of the commission to the foreman which shall not exceed five per cent of the chit amount.(5)The Registrar shall retain a copy of the bye-laws and return the other copy to the foreman with an endorsement that the bye-laws have been registered.(6)Notwithstanding anything contained in any contract, document or in any other law for the time being in force, any agreement contained in the articles of agreement between the foreman and subscriber which does not provide for payment of the entire chit amount after deducting the discount to the prized subscriber shall be void .
