Appeal to implement Chit Funds Act 40

Tiruchirapalli, May 21 : The Tamil Nadu Chit Fund Companies Association today appealed to the Centre to uniformly implement the Chit Funds Act 40 (1982) all over the country to protect the interests of chit fund companies and depositors.

A resolution to this effect was adopted at the Golden Jubilee celeberations of the association held here today.

Briefing newspersons on the deliberations of the association, M Thangavelu, President of the Association said the chit funds act was enacted about 25 years ago on the lines of the banking regulations Act 1949. Only a few states implemented it.

He said the non-implementation of the Act would lead to wilful financial irregularities and other related discrepancies by the chit fund managers.

The association also wanted strict enforcement of money circulation prize chits Act 1978 rpt 1979, banning the operations of chits by private commercial companies like jewellery shops and vessels shop through draw.

Union minister of state for Law and Justice K Venkatapathy in his address appealed to the chit fund companies to create confidence among the people on chit funds.

UNI