Section 19 in The Chit Funds (Madhya Pradesh) Rules, 1984
19. Valuation of chit amount in grain chits.
- In a grain chit, for the purpose of security under Section 20, the grain shall be valued by the Registrar as follows :-(a)the total quantity of grain due from all subscribers at one instalment of the chit shall be ascertained;(b)the market value of the time being of the total quantity referred to in clause (a) shall then be calculated;(c)in assessing the market value, the Registrar shall adopt the current market prices at the nearest Tahsil town as ascertained from the Tahsildar having jurisdiction;(d)one and quarter times the market value mentioned in clause (b) shall be taken to be the chit amount for, the purpose of furnishing security by the foreman under sub-section (1) of Section 20.
