Section 5 of the Chit Funds Act, 1982 – Prohibition of invitation for subscriptions except under certain conditions

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Section 5: Prohibition of invitation for subscriptions except under certain conditions

No person shall issue or cause to be issued any notice, circular, prospectus, proposal or other document inviting the public to subscribe for tickets in any chit unless such notice, circular, prospectus, proposal or document contains a statement that the previous sanction required under section 4 has been obtained and the particulars of such sanction.

Source: official text of The Chit Funds Act, 1982 as published on India Code (PDF). All sections of the Chit Funds Act, 1982.

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  1. Section 2 of the Chit Funds Act, 1982 – Definitions
  2. Section 6 of the Chit Funds Act, 1982 – Form of chit agreement
  3. Section 11 of the Chit Funds Act, 1982 – Use of words “chit”, “chit fund”, “chitty”, “kuri”, “fraternity fund”, or “Rotating Savings and Credit Institution”
  4. Section 4 of the Chit Funds Act, 1982 – Prohibition of chits not sanctioned or registered under the Act