conventional chit."
Section 3 of the Prize Chits Act which bans prize chits
and money circulation schemes reads as below :
" Section 3 .Banning ... Apex Court also analysied as to what
is meant by `Scheme' under the Prize Chits Act in
Para-8 of the same judgment
OFFENCES PUNISHABLE UNDER SECTION 4 AND 5 OF THE
PRIZE CHIT AND MONEY CIRCULATION SCHEME (BANNING)
ACT, 1978 AND SECTION ... OFFENCES PUNISHABLE UNDER SECTION 4, 5 OF THE
PRIZE CHIT AND MONEY CIRCULATION SCHEME (BANNING
expression "money circulation scheme" by shaping its definition in this form:
money circulation scheme' means any scheme, by whatever name called ... Scheme is "Guru Credit Card Goods Linked Incentive Schemes". According to the promoters of the Scheme, it is a double benefit Scheme
relative to or applicable to the enrolled
new representatives into the scheme. The scheme is formulated
as an inducement for enrolment of new members ... scheme and thus attracts the
definition of "Money Circulation Scheme" as provided in
section 2(c) of the "Prize Chits of Money
first prize of Rs. 5.000/-, two second prizes of Rs. 500/- each, five third prizes of Rs.250/- each and 45,000 fourth prizes ... Sheet and find out whether his ticket is entitled to any prize. All prizes (Rs. 5,000/-below) can be claimed and received from
called benefit/savings schemes and lucky draws and
that the basic common features of the schemes were
the giving of a prize and the ultimate ... name called
should be banned. Since prize chits were called
differently, "prize chits", 'benefit/savings schemes",
"lucky draws
called benefit/savings schemes and lucky draws and
that the basic common features of the schemes were
the giving of a prize and the ultimate ... name called
should be banned. Since prize chits were called
differently, "prize chits", 'benefit/savings schemes",
"lucky draws
chance at winning the prize.
It was further held that what has been paid as prize in kind
in various schemes conducted by the respondent ... participation in the lottery with the object of winning the
prizes, the schemes conducted by the respondent would
not fall within the ambit of Section
SECTION 3, 4, 5 OF PRIZES CHIT
MONEY CIRCULATION SCHEMES (BANNING) AND SECTION 9 OF
KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN
FINANCIAL ESTABLISHMENT ... SECTION 3, 4, 5 OF PRIZED CHIT MONEY
CIRCULATION SCHEMES (BANNIG) AND SECTION 9 OF KARNATAKA
PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL
ESTABLISHMENT
SECTION 3, 4, 5 OF PRIZES CHIT
MONEY CIRCULATION SCHEMES (BANNING) AND SECTION 9 OF
KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN
FINANCIAL ESTABLISHMENT ... SECTION 3, 4, 5 OF PRIZED CHIT MONEY
CIRCULATION SCHEMES (BANNIG) AND SECTION 9 OF KARNATAKA
PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL
ESTABLISHMENT
