KSFE Chitty Agreement Template - English¶

{{ksfe_logo}} KSFE

FORM VIII¶

(Section 6, Rule 14)

The Kerala State Financial Enterprises Limited¶

(A Government of Kerala undertaking)

Registered Office: "Bhadratha", P. B. No. 510
Museum Road, Thrissur - 680 020

CIN: U65923KL1969SGC002249
GSTIN: 32AABCT3817A1Z0

Branch Office: {{branch_office}}

Chitty Agreement¶

The following are the terms and conditions of the agreement entered into between the chit foreman, The Kerala State Financial Enterprises Limited, and the subscribers for conducting the chit on the {{blank_001}} day of every English calendar month.

1. This chit is registered at the {{blank_002}} Sub Registrar Office under number {{blank_003}}, in the month of {{blank_004}}, on the {{blank_005}} day.

2. Foreman: The foreman of this chit is The Kerala State Financial Enterprises Limited, Thrissur. This chit agreement is executed on behalf of the company by Branch Manager {{blank_007}} from the company's {{blank_006}} branch.

3. Chit amount: This chit shall have {{blank_008}} divisions. Each division shall have the installment amount shown in the table below, with a total of {{blank_009}} installments and a total chit amount of Rs. {{blank_010}} across all divisions.

The installment amount stated for each division above shall be paid without any deduction for the first installment. From the second installment onward, the amount payable shall be the stated installment amount after deducting the auction discount for the total division. This chit shall have {{blank_011}} lots and {{blank_012}} auctions. The maximum auction discount in this chit, including the foreman's commission, shall be {{blank_013}}.

1. Subscribers selected by lot: A subscriber who receives the chit by lot shall receive the amount after deducting the foreman's commission as prize money.

Subscribers successful in auction: A subscriber who wins the chit by auction shall receive only the prize amount after deducting the foreman's commission and the auction discount.

1. Chit period: The first installment date of the chit shall be in the year {{blank_014}}, in the month of {{blank_015}}, on the {{blank_016}} day. Thereafter, the {{blank_017}} day of every English calendar month shall be the installment date. If the chit day is a company holiday, the chit shall be conducted on the next working day. With 12 installments per year, the chit shall run for {{blank_018}} months and shall end in the year {{blank_019}}, in the month of {{blank_020}}.

2. The chit auction shall be conducted at the foreman's branch office situated in building number {{blank_022}} at {{blank_021}} town, or, if the branch office is shifted to another building, at that place. The auction shall begin at {{blank_023}} on every installment date and, subject to clause 10 below, shall continue until {{blank_024}}. If normal office functioning is not possible due to uncontrollable circumstances such as bandh, hartal, strikes, or law and order issues, the chit auction shall be conducted on the next working day.

3. Cash security: As security for the proper conduct of this chit, under Section 20 of the Chit Funds Act, the foreman has deposited Rs. {{blank_025}}, equal to the chit amount, as a fixed deposit in the {{blank_026}} District / Sub Treasury Savings Bank under receipt number {{blank_027}}. The said receipt has been pledged in favor of {{blank_028}}, Ex Officio Assistant Registrar of Chits, for the benefit of the subscribers. A certificate bearing number {{blank_029}} has been obtained from the Assistant Registrar of Chits confirming that the said security is sufficient. The foreman company shall not withdraw the whole of the said cash security except as and when the foreman's liabilities relating to the chit are discharged.

4. Chit procedure: At the place and time stated in clause 6 above, the person entitled to receive the chit in each installment shall be determined by lot / auction. However, the first installment shall be collected by the foreman without any auction or deduction. The lot / auction for the second installment shall be conducted on the first installment date, and the subsequent installments shall likewise be conducted in advance in the same order.

5. Total tickets: As stated in clause 3 above, there shall be {{blank_030}} tickets in one division and {{blank_031}} tickets in total. The said tickets shall be numbered sequentially from 1 to {{blank_032}}.

6. The lot / auction shall be conducted among subscribers in all the above divisions who have not yet received the chit and who are not in arrears. In every installment, the drawing of lots shall be conducted first and then three auctions shall be conducted. The auction shall begin from the amount of the foreman's commission, and the auction shall be confirmed in favor of the subscriber who offers the highest auction discount, subject to the conditions stated below. However, if more than one subscriber is willing to bid an auction discount of {{blank_033}} percent of the chit amount, including the foreman's commission and auction discount, the successful subscriber shall be decided by drawing lots among them.

7. If none of the subscribers is present at the time of auction proceedings, or if those present do not participate in the auction, ticket numbers of subscribers who have not received the chit and who are not in arrears of subscription shall be drawn by lot, and the successful subscriber shall be determined accordingly. The subscriber so determined shall be entitled to the amount after deducting the foreman's commission.

8. Subscribers who are unable to participate in the auction directly may authorize an agent as proxy to participate in the auction on their behalf. Such proxy shall have, for that auction only, all rights and powers of the subscriber. The subscriber shall be responsible for all acts done and all documents signed by such proxy.

9. Subscribers who receive the chit in the respective divisions shall immediately deposit the auction discount amounts or, otherwise, issue a receipt to the company acknowledging receipt of the same. If they fail to do so, the foreman company may, at its discretion, re-auction the said division immediately.

10. For all disputes arising at the time of auction, the decision of the officer conducting the auction on behalf of the company shall be the final decision, subject to the Chit Funds Act, 1982.

11. (a) Time limit for payment of chit amount: Subscribers who receive the chit shall furnish reasonable security or guarantee for the prize amount payable by the company and for the installment amounts payable by them to the company in future. They shall execute and, where required, register the necessary documents and satisfy the company. On doing so, the chit amount may be received after 30 days and within 60 days from the date of auction.

(b) If the successful subscriber or nominee does not produce the necessary security or guarantee and receive the chit amount within two months from the date of receiving the chit, the foreman company shall have the right to cancel that auction / lot and conduct a re-auction / re-lot for that installment. Any difference in auction discount arising from such re-auction shall be applicable to all subscribers in this chit.

1. (a) If the chit amount payable to the subscriber as stated above is insufficient for the amounts to be paid in future under the chit, the foreman company shall have the right to recover the shortfall, interest thereon, and other expenses from the subscriber. If, after deducting future installments and other dues from the chit amount, any balance remains, the foreman company shall be liable to pay the same to the subscriber after completion of the chit. If the company fails to do so, the subscriber or nominee shall have the right to recover the balance amount with interest from the company, from the security amount, and from the other assets of the foreman from the date of completion of the chit.

(b) If the subscriber or the subscriber's nominee furnishes the required security or guarantee for receiving the chit amount, the foreman company shall pay the subscriber or nominee after deducting the chit installment amounts up to the date on which security is furnished, the full share amount without dividend interest, and interest. If the foreman company does not pay the chit amount accordingly, the subscriber or nominee shall have the right to recover the chit amount due and interest accruing from the date on which security satisfactory to the foreman company was furnished, from the other assets of the foreman company.

1. (a) Security: Immovable property security, personal surety, fixed deposits in banks, bank guarantee, government securities, KVP, NSC, gold ornaments, life insurance policy, chit passbook with the foreman company, fixed deposit, and similar items may be accepted as security. The foreman company shall have full authority to decide which type of security is required. If personal surety is required, the sureties shall be persons drawing salary at the rate fixed by the foreman company, and they shall be liable as principal debtors for the amounts remaining payable to the chit.

(b) Dividend interest: The total auction surplus after deducting the foreman's commission in the divisions shall be distributed equally among all subscribers, irrespective of whether they have received the chit or not.

1. (a) Mode of payment: The first installment amount shall be paid along with the application, directly in cash or by money order, at the foreman company's {{blank_034}} branch. Thereafter, all subscribers shall pay the installments to the foreman company on the respective installment date and obtain a receipt from the foreman company. Installments from the second installment onward may be paid by money order, cheque, draft, online payment, or through any branch of the company, and the installment amount so paid shall be entered in the passbook.

(b) If subscribers who have not yet received the chit fail to pay the respective installment amount on the installment date, they shall pay the amount with interest at nine / twelve percent on or before the next installment date. If they fail to pay even by the second installment date, the company may, after issuing notice in accordance with law, remove such subscriber from the chit and, if the company considers it appropriate, transfer the said ticket in the name of the company or another person. The defaulting subscriber shall be informed within 14 days of removal and substitution. However, even if the defaulting subscriber has not been removed from the list of subscribers as stated above, it shall not be understood that the defaulting subscriber has been permitted to continue in the chit.

© If a subscriber who receives / bids the chit fails to pay any installment amount on or before the respective installment date, the dividend interest shall be forfeited and the full installment amount shall be paid before the next installment date with interest not exceeding 12 percent. If default is committed in the next installment also, the foreman company shall have the right to recover the entire liability from the default date, namely the share amount without dividend interest, together with interest not exceeding 12 percent from the default date and expenses, as one amount. If demanded, the subscriber shall be bound to pay the same immediately. If the subscriber fails to pay, the foreman company shall have the right to recover such amounts from the subscriber, from the secured properties, and from the sureties, by revenue recovery or otherwise.

(d) If the company at any time decides that the security furnished by subscribers who have received the chit amount is insufficient, such subscriber shall be bound to furnish sufficient additional security or guarantee. If additional security or guarantee is not furnished, the foreman company shall have the right to recover the installment amounts remaining payable under the chit, together with interest not exceeding 12 percent from the date on which additional security or guarantee was demanded.

1. If a defaulting subscriber who has not received the chit is removed, the substituted subscriber / foreman company shall pay all installments, including defaulted installments prior to removal. The foreman company shall be liable to pay the removed subscriber, before the next installment date, the balance amount after deducting interest and any other liabilities due to the foreman company from the amounts paid by the removed subscriber. If the foreman company does not pay the amount due when demanded by the defaulting subscriber, such defaulting subscriber shall have the right to recover the amount with interest from the foreman company. The removed subscriber shall not be entitled to dividend interest on the installments paid. If the amount due to the removed defaulting subscriber is not received by that subscriber within the next installment, the amount shall be deposited in the foreman's {{blank_035}} bank and the removed defaulting subscriber shall be informed accordingly.

2. Since there is no auction for the first installment, subscribers shall be bound to pay the full amount without dividend interest or discount.

3. Foreman's commission: The commission of the foreman company for conducting the chit is fixed at five percent of the chit amount.

(a) The foreman company shall have the authority to collect from the subscribers the Goods and Services Tax (GST) imposed by the Central Government on the foreman's commission, at the rates applicable from time to time.

1. Last installment: Subscribers who remain without receiving or bidding the chit until the last installment shall be entitled to the full chit amount after deducting the foreman's commission. The foreman company shall be liable to pay the said amount to such subscribers within 30 days after completion of the chit, and such subscribers shall have the right to recover the same.

2. If any amount is recoverable by the foreman company from any subscriber, either personally or as surety, in relation to the chit, the foreman company shall have a first charge over the installment amounts paid by such subscriber in the chit. Likewise, all amounts and security deposited by the foreman company in relation to the chit shall be liable for the amounts payable to the subscribers.

3. Receipts shall be issued for all amounts paid by subscribers to the foreman company and for all amounts paid by the foreman company to subscribers.

4. The chit amount shown in the above table shall not be increased for any reason.

5. (a) Transfer of chit rights: Subscribers shall transfer their rights in the chit only with the written consent of the foreman company. A substituted subscriber shall not have any rights greater than those of the previous subscriber, and all terms and conditions stated herein shall apply to the substituted subscriber. Removed subscribers do not require the prior permission of the foreman company to transfer the rights they had in the chit. However, a person acquiring such rights by transfer shall not obtain any right greater than the right held by the removed subscriber.

(b) The right of the foreman company to recover installment amounts from successful subscribers shall not be transferred without the prior written permission of the Assistant Registrar of Chits. If such transfer delays the amounts payable to subscribers who have not received or bid the chit, or creates circumstances in which such amounts may not be received, those subscribers shall have the right to invalidate such transfers.

1. (a) Chit balance sheet and chit records: The foreman company shall prepare the annual balance sheet of the chit in Form No. 28, showing the debts and assets relating to the chit, their nature, and the method by which the chit fund has been valued. It shall be given to the auditors for audit under Chit Rule 31, the audited balance sheet shall be filed in time, and the foreman company shall obtain and keep a certificate from the auditors.

(b) All records relating to the chit may be inspected by all subscribers at the office of the foreman company stated above, on all chit installment dates between 11:00 AM and 12:00 noon.

1. Approved bank: Deposits relating to this chit shall be deposited in a treasury authorized by the Government.

2. Amendment of chit agreement: If there is a written request from at least 25 percent of subscribers who have not received the chit / have not bid the chit / have not received the prize amount, for making amendments, additions, or deletions in the clauses of the chit agreement that are not contrary to the provisions of the Chit Funds Act and Rules, the foreman company may convene a meeting of the subscribers for that purpose.

3. If the chit cannot be continued because of any default of the foreman company, the foreman company shall be liable to pay, within 30 days, the share including dividend interest to all subscribers who have not received or bid the chit. If the company fails to do so, such subscribers shall have the right to recover those amounts from the foreman company's security deposit, other assets, and installment amounts receivable by the foreman company from subscribers who have received / bid the chit.

4. Foreman's ticket: One ticket in each division shall stand in the name of the foreman company. The chit amount for that ticket shall be collected as the first installment as stated in clause 8 above, without drawing lots, auction, or furnishing any security. However, if there are any other tickets in the foreman's name, the foreman company shall not have any rights or privileges in respect of those tickets beyond those of other subscribers. If such tickets become entitled by lot or are successful in auction, the foreman company shall, like other subscribers, furnish security required by law for the future installment amounts payable (Section 21 a,e of the Act).

5. If this chit agreement does not contain provisions governing any matter, that matter shall be governed by the provisions of the Chit Funds Act, 1982 and the Rules, amendments made from time to time, and the conditions implemented by the company from time to time, subject to the Act and Rules.

6. The Assistant Registrar of Chits shall have authority to decide all disputes relating to the conduct of the chit under Section 64 of the Chit Funds Act, 1982 and the related rules.

Nomination: If the subscriber dies before the expiry of the chit period, the nominee named below is authorized to continue the chit and to receive the chit amount and other benefits on behalf of the subscriber.

I have read and understood all the terms and conditions stated above, agree that they are binding on me, and agree to act accordingly. I apply to be admitted as a subscriber in the division shown below in this chit, and I sign this chit agreement in the presence of the witnesses shown below.

1. I hereby authorize KSFE to bear, on my behalf, the expenses required for verifying the purity of the gold ornaments produced by me before KSFE as security for receiving the loan / chit amount.

2. I hereby authorize KSFE to bear, on my behalf, the expenses required for valuation and legal scrutiny of the property produced by me before KSFE as security for receiving the loan / chit amount.

Application Form¶

I am sending the first installment amount of Rs. {{first_installment_amount}} for the said division directly by money order / draft / cash.

Applicant's full name: {{applicant_full_name}}

Permanent address:
{{applicant_permanent_address_line_1}}
{{applicant_permanent_address_line_2}}
DIST: {{applicant_district}} P.O.: {{applicant_post_office}} PIN: {{applicant_pin}}

PAN No.: {{applicant_pan}}

AADHAAR No.: {{applicant_aadhaar}}

Phone: {{applicant_phone}} Mobile: {{applicant_mobile}}

Age and date of birth: Age {{applicant_age}} Date of birth {{applicant_date_of_birth}}

Educational qualification: {{applicant_education}}

Applicant's occupation / designation: {{applicant_occupation}}

Official address:
{{applicant_official_address_line_1}}
{{applicant_official_address_line_2}}
{{applicant_official_address_line_3}}

Source of income:

• [{{income_source_job}}] Employment
• [{{income_source_agriculture}}] Agriculture
• [{{income_source_business}}] Business
• [{{income_source_other}}] Other sources

Monthly income:

• [{{monthly_income_upto_5000}}] Up to Rs. 5,000
• [{{monthly_income_5000_10000}}] Rs. 5,000 - 10,000
• [{{monthly_income_10000_25000}}] Rs. 10,000 - 25,000
• [{{monthly_income_25000_50000}}] Rs. 25,000 - 50,000
• [{{monthly_income_above_50000}}] Above Rs. 50,000

Father's / mother's / husband's name: {{parent_or_spouse_name}}

Nominee's name, address for correspondence, phone number, and relationship:
{{nominee_name}}
{{nominee_address_line_1}}
{{nominee_address_line_2}}
Phone number: {{nominee_phone}}
Relationship: {{nominee_relationship}}

Address to which letters should be sent to the applicant, with phone number:
{{correspondence_address_line_1}}
{{correspondence_address_line_2}}
{{correspondence_address_line_3}}
DIST: {{correspondence_district}} P.O.: {{correspondence_post_office}} PIN: {{correspondence_pin}}
Phone: {{correspondence_phone}}

Agent's name: {{agent_name}}

Agency number: {{agency_number}}

Signature and seal: {{agent_signature_and_seal}}

Witness's name, signature, and address: {{witness_name_signature_address}}

Place: {{place}}

Date: {{date}}

(Applicant's signature): {{applicant_signature}}

Chit number: {{chit_number}}

Subscriber number: {{subscriber_number}}

Foreman: {{foreman}}

Branch Manager: {{branch_manager}}

KSFE Ltd. {{ksfe_branch}}

Assistant Registrar of Chits: {{assistant_chit_registrar}}