Section 13 in Jammu and Kashmir Chit Funds Act, 2016
13. Aggregate amount of chits.
(1)No foreman, other than a firm or other association of individuals or company or co-operative society, shall commence or conduct chits, the aggregate chit amount of which at any time exceeds one lakh 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 ten lakhs ;(b)in any other case, a sum calculated on the basis of one lakh 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.Explanation. - For the purpose of this sub-section, "net-owned funds" shall mean the aggregate of the paid-up capital and free reserves as disclosed in the last audited balance sheet of the company or co-operative society, as reduced by the amount of accumulated balance of loss deferred revenue, expenditure and other intangible assets, if any, as disclosed in the said balance sheet.
