Chit Fund in Delhi

The Chit Fund Department was set up by the Government of Delhi with the objective of controlling the activities of chit-fund companies under the Madras Chit Funds Act 1961 extended to Delhi and the Delhi Chit Fund Rules 1964. The Delhi government’s website has only 51 chit-fund companies registered under it (updated up to 22 March 2014). Team CV found out that of these 51 companies many have either shifted and changed their address or changed the company’s name or even ceased to exist.

Guidelines to become member/subscribers in a chit fund in Delhi

• See the certificate of incorporation issued by the Registrar of Companies (RoC). All chit-fund companies are required to be registered with RoC. This is applicable for all private or public limited companies.

• Ask for a list of the directors of the company. You should also personally satisfy yourself about the financial soundness of the directors of the company and their sincerity towards subscribers.

• Ask for the certificate of registration for first bye-laws issued by the Registrar, Chit Funds (RCF), Delhi.

• Check if the bye-laws are registered with RCF Delhi in respect of the chit company you wish to join.

• You should go through the clauses of bye-laws and be sure whether you are financially able to subscribe to the chit group.

• Verify from the office of RCF whether the company is functioning and whether any complaint or court case is pending against the company.

Chit fund panchayat

Under the existing Delhi Chit Fund Act, any dispute regarding payment can be settled by a civil court and to expedite the dispute settlement outside the court, a new experiment has been conducted by the Delhi Chit Fund Department. A chit fund panchayat comprising representatives of established companies, senior citizens and an officer of the department has been formed. The panchayat meets every Friday afternoon and tries to settle the complaints of the subscribers against the company on the basis of mutual agreement. In case no settlement is arrived at, complainants are advised to seek remedy from the court of law, if they so desire. Subscribers can also directly approach the civil court or consumer forums for recovery of their dues against chit-fund companies without filing complaint in the office of RCF. For further information one may contact the office of the Registrar, Chit Funds, Delhi, on all working days at 13th floor, Bikri Kar Bhawan, IP Estate, New Delhi 110 002. Phone: 011-331 8992 URL: www.chitfund.delhigovt.nic.in