Section 3 in The Maharashtra Chit Funds Rules, 1976
3. Subject matter of by-laws.
- The by-laws shall provide for the following matters, namely(1)Scheme of the chit. -(a)The objects of the chit;(b)place where the chit is proposed to be conducted and the Registrar within whose jurisdiction it is situated;(c)chit amount;(d)total number of tickets in the chit:(e)total number of instalments and the amount of subscription payable for each instalment;(f)minimum number of tickets or the minimum fraction of a ticket and the maximum number of tickets, if any, fixed for which subscription can be made by a subscriber;(g)date of commencement and termination of the chit.(2)Foreman. -(a)If the Foreman is not a firm or Corporation, his name, father's name or mother's/husband's name, age, occupation and permanent address of the Foreman;(b)if the Foreman is a firm, the name of the firm and the name of each one of the partners of the firm and the other particulars mentioned in sub-clause (a) of each partner thereof;(c)if the Foreman is a Corporation the name of the Corporation, its registration number and the name and situation of its registered office :Provided that, if the Foreman is a firm or a Corporation, a true copy of the entry in the Registrar of Firms or of the registration certificate, as the case may be, duly certified by the Registrar of Firms or the Registrar of Companies shall be produced with the by-laws before the Registrar. The true copy of the entry in the Register of Firms or the registration certificate shall be retained by the Registrar along with the by-laws in his office.(3)Rights of the Foreman. -(a)Right, if any, reserved to the Foreman to obtain the chit amount at. any specified instalment without any auction, drawal or tender:(b)the rate of commission or remuneration;(c)to transfer the right of defaulting subscribers to substitute subscribers, subject to the condition that every substituted subscriber executes the chit agreement and have it filed by the Foreman with the Registrar before the drawing of the instalment next to the one at which the substituted subscriber concerned participated in the chit;(d)lien of the Foreman on the amounts due to prized subscribers, for the subscription due to chit payable by each subscriber.(4)Duties of the Foreman. -(a)Duty of Foreman to specify the date and place for payment of the prize amount to the prized subscribers;(b)details of the arrangements made for the investment of funds including the undisbursed amount due to prized subscribers, arrears of subscription collected from substituted subscribers and future subscriptions from defaulting prized subscribers;(c)names of the approved Banks into which all the moneys relating to the chit .shall be deposited under the provisions of the Act;(d)description and kind of security offered by the Foreman for running the chit with right reserved to change or substitute the security subject to the previous sanction of the Registrar;(e)nature and kind of audit of accounts proposed and the person by whom the balance-sheets are to be audited as required by section 17;(f)date, time and place for the examination of chit records under section 37 and the fee payable therefor;(5)Subscription, place of payment and last date for payment of each instalment;(6)Date, time and place of drawal, auction or receipt of tender and the maximum and minimum amounts of dividend, if any, fixed in respect of each instalment;(7)Dividend Information as to how a dividend is assessed and how it is distributed among the subscribers;(8)Mode of determining the successful bidder;(9)Procedure to be adopted when there are no bidders or when there is a tie between the bidders;(10)Persons competent to bid at each instalment;(11)Penalties and fines imposed, if any, on defaulting subscribers;(12)Provision made for the payment of subscription due from a defaulting subscriber till a substituted subscriber takes his place;(13)Provision made for t he transfer of the ticket of non-prized subscribers and of the interest of the Foreman;(14)Procedure to be adopted on the death of a subscriber before the termination of the chit;(15)Procedure for the continuance of the chit in the event of,-(i)the death of the Foreman or his becoming of unsound mind, if the Foreman is an individual;(ii)the dissolution of the firm, if the Foreman is a partnership firm; and(iii)the winding up of the Company if the Foreman is an incorporated company.(16)Procedure to be adopted for meeting the expenditure connected with the execution of chit agreement, the security bond to be executed by prized subscribers, release of security and any other matter relating to the chit.(17)Such other matters incidental to the conduct and management of the chit as may be deemed necessary.
