CHITTY COMPOUNDING FEE

(As per GO(P)No.109/2020/TD dt 25.08.2020) w.e.f 25.08.2020

ANNEXURE III - Table 1 - Offences Punishable Under Under Sub Section (1) of Section 76 Of The Act
(Major Offences)
Compounding Authority : Deputy Registrar of Chits (HQ) TVM
Section Compound
Form
S No Offence / No. ing
Rule Amount
1 Inviting Subscription to chits without Previous Sanction 4 5000
( )

2 Violation of minimum Capital Requirements 8 5000

( )
3 Running Chitties Without Certificate of Commencement 9 5000
(
)
4 Doing chit business without using or doing other business 11 5000
using the words ‘chits’, ‘chit fund’, ‘chitty’, or ‘kuri’ as part
of his name as provided under section 11 of the Act
( !", #!, , $ % &' ( )
& ! * + , -+ /
' -+/ 0+-' 1 * +
)

5 Opening place of business without without permission. 19 5000

( & 2 3 4 )

6 Failure of Forman in doing his Duties as per Sec 22 - 22 5000

Payment of prize amount, deposit of unpaid prize amount
into bank, distribution of dividend etc
( + 5 67 ! '8 '
&9: & )

7 Failure of Forman in maintaining records/preparing and

filing Balance Sheet.
(* + ,' ' ' ; <"=9 !/ & >
> ? 7 )
i When the delay does not exceed 15 days 1500
ii when the delay exceeds 15 days but does not exceeds 30 24 3000
days
iii When the delay exceeds 30 days 5000
8 Failure to pay amount to Defaulting Subscriber or 30 5000
depositing such amount with the Bank
(& ! & 5 @
&9: & )
9 Failure to deposit the consolidated future subscriptions 33(4) 5000
realised from prized Subscriber and its misuse(A & '
B 5! - C -D 7
E+" 19 F ; )
-G+ )
10 Failure to produce records before registrar for inspection 46(2), 5000
(3)
and/or non- compliance of instructions in the inspection
report
( H "E $ + -3 ' *
-I3 7 + )

11 Failure to produce records before Chit Auditor 61(5) 5000

( JK ! JK &3L ' - 4 7 M H
-' JK ' M
-' N@ )

ANNEXURE III - Table 2 - Offences Punishable Under Sub Section (2) of Section 76 Of The Act

Compounding Authority : Deputy Registrar of Chits Concerned [District Registrar (Gl)]

Section Form Compounding

S No Offence / Rule No. Amount

1 a Non-filing/delay in filing Certificate regarding furnishing 10(2) Form 3000

VII
of true copy of Chit Agreement to Subscribers
(& -' + O! & ! .
& & K Q-$=< ' N -
' + 62L - / 62L $ O! ,
15 9' )

b Delay in filing Minutes 18 Form

(- / $ O! ! 21 2 & ! XX
' N )

i When the delay does not exceed 15 days 1000

ii When the delay does exceed 15 days but does not 2000
exceeds 30 days
iii When the delay exceeds 30 days 3000
c Delay in filing details of Removal of Subscriber 28(3) 3000
( 9 ST 14 2 & , & 9
S & & ' N )

d Delay in filing details of Substitution of Subscriber 29(2) 3000

(+ 6 - ! 14 2 &
& - & & ' N )

e Delay in filing of deed of Transfer of Rights of foreman, 37 3000

or of non- prized subscriber - (Assignment)
(- ,-' & ,-' & 3
U N@ - 4 ' N )
 f Delay in filing consent of subscribers for withdrawal of 26, 3000
foreman or for terminating chit before due date 40(b),
( & V ' C <D! 41
+ W $ < -
&2 - & O
- 0 & 14
2 & ' N )
2 Irregular maintenance of Chit Records - for each such 3000
record
( ' 3 $ K 7 3 ' '
' N )
3 Omission on the part of foreman in issuing subscribers
copy of
a True copy of registered Chit Agreement Form
10(1) VII
3000
H X ST %E1 , , + O!
& ! .

b Details of Special General Body - Time, date, place, 38(4) 3000

copy of special resolution etc
(E+- L H $ -; K -' 1 , $ ' O!
& ! )

4 Violation of terms of chit agreement regarding date, 38(3) 3000

time, place of chit or Non-compliance of instructions of
Registrar in the Special General Body
( %E1 , - / $ O! 9' ,
* , ' ' &L&* 7 +
, E+- L H $ -; K -' 1 ,
* H "E -I3 &
+ .)

ANNEXURE III - Table 3 - Offences Punishable Under Under Sub Section (3) of Section 76 of the Act

Compounding Authority : Deputy Registrar of Chits (HQ) TVM

S No Section/ Form
Offence No. Compounding
Rule
Amount
1 Willfully making any false statement in any doc 5000
required to be filed under this act.
( OY & ' & & 7 '
- 4 7 ' N@ )
 Application for compounding should contain
Application in Form I of Appendix III (3 Copies) Rule. 65(2)
1
1
Undertaking by Foreman in Form II in Rs.100 Stamp Paper. Rule. 65(5)
2
(1- Original +2 Self Attested photo copies)
For offences U/S 76(2) Pay Compounding amount in Rule. 65(6)
advance with application. (ie For Application to DR Chits of
2 Concerned District)
For offences U/S 76(1). (3) the Compounding amount Rule. 65(10)
determined by way of composition be paid after issuing the
compounding order. (ie For Application to DR Chits HQ,
3 TVM)
On the receipt of application an order shall be issued by Rule. 65(7)
compounding Authority with in 180 days from the date of
receipt of completed application by Compounding authority
4
If the person who committed the offence admits his offence Rule. 65(7)
in the application, no hearing need be conducted
5
If the Compounding authority decided not to compound the Rule. 65(11)
offence, any amount paid in advance shall be refunded
6
No contravention shall be compounded if an appeal has Rule. 65(12)

7 been filed U/s 70 or 74 of the Act