Section 2(2) in The Goa, Daman and Diu Chit Funds Act, 1973
(2)"chit" means a transaction whether called chit fund, chit kuri or by any other name, by which its foreman enters in an agreement with a number of subscribers that every one of them shall subscribe a certain sum by instalments for a definite period and that each subscriber in his turn as determined by lot or by auction or by tender or in such other manner as may be provided for in the agreement, shall be entitled to a prize amount.Explanation. - A transaction is not a chit within the meaning of this clause, if in such transaction,-(a)some alone, but not all, of the subscribers get the prize amount without liability to pay future subscriptions; or(b)all the subscribers get the whole of the chit amount by turns with a liability to pay future subscriptions.Illustration. - There are 100 subscribers to a chit and the subscription by each of them is ten rupees. All the subscribers get by turn one thousand rupees being the whole of the chit amount and are liable to pay future subscriptions. The transaction falls within clause (b) of the above explanation and is not a chit;
