Officials directed to act against illegal chit funds

Chit funds that are operating without permission will come under the scanner with immediate effect as the Registrar of Cooperative Societies has directed the deputy registrars in all districts to take action against such funds and file a report.

In a circular dated November 4, the Registrar has cited that illegal chit funds have become rampant in the state in the absence of any inspection by local officials.

As per the Chit Fund Act, 1982, those running chit funds will have to mandatorily obtain permission from the Registrar. The permission will lapse if the fund is not in operation within six months.