Licence for money handling.

CA VISHNU GAVKARE (Querist) 05 December 2011 This query is : Resolved
holding bisi
in which group of people contributr an equal amount n draw d total amount every month either by lucky draw or mt predecided no is covered by any act n do it needs any licence?

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Shonee Kapoor (Expert) 06 December 2011
No, it is illegal, though chitfund is legal in some states, which require registration and all.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

V R SHROFF (Expert) 06 December 2011
U r talking abt VISHI.
it is illegal & an offence.
Though it helped lot of businessman and hotelier, for common people lost their amt,

prabhakar singh (Expert) 06 December 2011
Yes! experts are right in speaking it illegal.

vasant kulkarni (Expert) 06 December 2011
THERE IS NO SYSTEM OF REGISTERATION OF SUCH ILLEGAL ACTIVITY.

Advocate. Arunagiri (Expert) 06 December 2011
I think the author is testing the experts, because the way he raised this query, clearly shows that he knows the answer.

CA VISHNU GAVKARE (Querist) 07 December 2011
Thank u very much for ur advice but i think it is carried in almost each area though on small scale i.e. 5000 per member.
& cant it b shown as group of people contributing for the benifit of themselves?

CA VISHNU GAVKARE (Querist) 07 December 2011
& one more question is tht can an individual lent money to other individual for some period say 6 months to earn interest?
is tht also illigal pr it needs licence?