Section 7 in Jammu and Kashmir Chit Funds Act, 2016
7. Filing of chit agreement.
(1)Every chit agreement shall be filed in duplicate by the foreman with Registrar.(2)The Registrar shall retain one copy of the chit agreement and return the duplicate to the foreman with an endorsement that the chit agreement has been registered :Provided that the Registrar may refuse to register the chit agreement on anyone or more of the following grounds, namely :-(a)that the security offered by the foreman under section 20 is insufficient ;(b)that the foreman had been convicted of any offence under this Act or under any other Act regulating chit business and sentenced to imprisonment for any such offence ;(c)that the foreman had defaulted in the payment of fees or the filing of any statement or record required to be paid or filed under this Act or had violated any of the provisions of this Act or the rules made thereunder ;(d)that the foreman had been convicted of any offence involving moral turpitude and sentenced to imprisonment for(b)his methods of operation ;(c)the interests of prospective subscribers ;(d)the requirements as to security ; and(e)such other factors as the circumstances of the case may require.(3)The amount of discount referred to in clause (f) of sub-section (1) shall not exceed thirty per cent of the chit amount.(4)Where the prized subscriber at any instalments of the chit is required to be determined by auction and more than one person offer the maximum discount, the prized subscriber shall be determined by lot.
