Section 19 in Andhra Pradesh Chit Funds Rules, 2008
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 for 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 Mandal town as ascertained from the Mandal Revenue Officer having jurisdiction;(d)One and a 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.
