SRESHTA CHIT FUNDS PRIVATE LIMITED
# 24-14-4; Peddadavari street, D.N.R. College Canal Road, Srirampuram; Bhimavaram;
West Godavari District, Andhra Pradesh, Pin 534 202,
Phone: - 08816 229257 Mobile: 7382338712,
E-mail:- sreshtachitfunds@gmail.com
www.sreshtachitfunds.com
Chit Bye-law
1. Date of Commencement and termination of Chit :
Date of Commencement: _______________________ Date of Termination: _________________2. Mode of ascertaining the Successful Bidder (prized Subscriber) and Discount:-
3. The duration of the Auction shall be 15 Minutes in respect of all types of groups. Auction in all months will start with a minimum of 5% of the Chit value (i.e. Foreman Commission) A non prized subscribers who cannot personally participate in the auction may submit his bid amount in a sealed cover at least one day before or authorize an agent in the same manner. Only the subscribers or their authorized agents will be allowed to take part in auction. No offer shall be given through telephone.
4. Generally defaulted subscribers will not be allowed to participate in the auction. No outsiders shall be permitted to participate in the auction.
5. In case there are more than one bidder for the same discount the auction will be decided by lot such bidders.
6. The auction will be conducted under the following pattern marked
a) Maximum ceiling Auctions : Auction shall start from amount over and above the Foreman's commission of 5% and the bidders may in auction raise the discount to a maximum of 40% of the chit value. Each time the bid shall be raised by Rupees five hundred or multiplies of five hundred as decided by particular auction.
b) Auction by combination or open bidding and sealed cover first prize offer : In this type of auction system the bid start with a minimum discount of 5% of the chit value and the bidders may in auction, raise the discount by Rupees five hundred or multiples of Rupees hundred in 15 minutes duration, and at the end of the open auction, offers submitted in sealed covers will be opened and compare the bid, whoever bids highest will be declared as prized subscriber.
7. Mode and Proportion in which the discount is distributable by way of dividend foreman’s commission or remuneration
a) The Foreman shall also be entitled to subscribe for one or more chits.
b) The Foreman is entitled to commission or remuneration of 5% of the chit amount.
c) The Foreman is entitled to receive and realize all contribution from the subscribers and to distribute the prize amount to prized subscriber and the dividend amount to the subscribers.
d) The Foreman shall also be entitled to demand sufficient security from any prized subscriber for the payment of future subscriptions.
e) The Foreman shall also be entitled to substitute subscriber in the place of defaulters.
f) The Foreman shall also be entitled to cancel the auction confirmed in favor of the subscriber and of the Foreman with 21 days from the date confirming the auction and as a result the dividend will be modified accordingly which shall be met by all the subscribers.
g) The Foreman will have a right to adjust any amount available held in the name of the subscriber under any account chit or otherwise our offices / branches against the out-standing dues of the prized chit without notice to the subscriber.
8. The date, time and place at which the chit is to be drawn :- The FIRST Auction shall be held on _______________ and subsequent on every__________________________ day of every month between_____________________ and __________________ at the Foreman's Office situated at __________________________________________________________________________________
9. Foreman's entitlement to the chit amount without auction, the installment at which the Foreman is to get the chit amount: - The Foreman shall be entitled to obtain the chit amount of the THIRD installment without any auction, lot draw or tender.
10. Determination of the prized subscriber when there are no bids or tenders :- When there are no bids or tenders at the auction a lot will be drawn from amount the non prized subscribers who have paid their subscription up-to-date, at the fixed minimum discount of 5% (Foreman's Commission)
11. Persons competent to bid and the rights of the participants if they are nominees of subscriber :-
Persons competent to bid shall be
a) All non-prized subscribers who have paid their subscriptions up to date and paid
b) Those authorize by non-prized subscribers who have their subscriptions up-to-date and paid
c) If any prized subscriber dies before the termination of the chit, the Foreman has the full right to recover the arrears of further subscription from the legal heirs of the deceased subscriber
d) A subscriber removed from the chit before termination, for any reason, is entitled for a refund only the net amount of subscriptions, deposited by him / her less 5% of chit amount towards damages from breach of contract. The refund will be made after the substituted subscriber draws the prized amount or at the close of the series whichever occurs first.
12. Penalties and fines imposed, if any on defaulting subscriber :
NON PRIZED SUBSCRIBER - If a non-prized subscriber fails to deposit his monthly subscription before the due date, penalty will be charged @ 3 paise per rupee per month or part thereof. If the default is continued to second month, penalty will be charged @ 6 paise per rupee per month or part thereof. If the default continues for more than two months the subscriber will not be entitled to dividends in addition to the aforesaid penal charges. A subscriber who has not made up-to-date payments of all the installments due from him will not be permitted to bid in the auction. If he does, his bid will be cancelled and he will be required to make good the loss incurred for transferring the bid to another subscriber of for conduction the reauction. If the non-prized subscriber fails to pay the subscription for three consecutive installments, he shall be liable to be removed from the list of subscribers and the Foreman, at his option, shall be entitled to substitute a new subscriber in place of the defaulting subscriber and the default ticket of the chit will be dealt with subject to the bye-laws and the relevant provisions of the Chit Fund Act.
The Foreman at his discretion can waive the penalties partly or fully and also postpone the removal. An expelled member may be readmitted on such term as the Foreman deems proper.
PRIZED SUBSCRIBER : - When a prized subscriber, defaults in payments penalty of 6% or part there of will be charged for first month. If the default continues over a month such a member will not be entitled to dividends also in addition to the aforesaid penalty charges of 6% or part there of per month.
If the default is continued consecutively for a period of three months the prized subscriber and the executants of the security bonds or sureties loose the future dividends and benefit of paying the future subscriptions in installments. They shall become liable to make consolidated will not any way discharge the liability of all or any of the executants of security documents or the nominees. The death of a subscriber will also not discharge the nominee, legal heir or the sureties
LIEN OVER AMOUNTS: - If the chit subscribers are indebted to the Foreman for any amount under the particular chit as arrears of any dues including subscription or as surety, the Foreman will have in respect of such liabilities a first charge over any amounts that may be due to them from the Foreman in respect of any other chit or otherwise. The Foreman is entitled to set off such credits towards their liabilities to the Foreman. When any chit is drawn, only the balance, if any, left after affecting such set off will be given to the subscribers.
If the subscribers have any non-prized chit amount or F. D.s' with the Foreman, the Foreman has the right to foreclose the chit & F. Ds. He has and adjusts the amount towards his liabilities prized arrears.
If the subscriber is surety to any prized SUBSCRIBER, who becomes default subsequently, the amount paid by such subscribers either for non-prized chits or deposits will be foreclosed by the Foreman and the amount will be adjusted towards the defaulted subscriptions as he jointly and severally liable to the debits.
DOCUMENT: The prized subscriber and his sureties shall execute such documents in such manner as may be prescribed by the foreman.
RELEASE OF SECURITY: All the securities mentioned can be duly cancelled by the Foreman and delivered to the parties concerned on receipt of all subsequent installments due.
13. Recovery of loss : If the prized subscriber fails to collect the Prized Money on production of surety Security as mentioned above, it is open to the foreman to appropriate the prize money towards future installments and collect the balance if any from the prized subscriber or cancel the auction and conduct re-auction at the cost and risk of the prized subscriber.
14. The subscriber under takes to abide by the Bye-Laws of the Chit. Any dispute arising of this agreement shall be settled according to the provisions of chit funds act, 1971 of Andhra Pradesh.
_________________ _________________
Signature of Forman Signature of Subscriber
Witness1 Witness 2
Name: Name:
S/o, S/o,
Age & D.O.B Age & D.O.B
Address: Address:
Signature: Signature:
