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Manohar   14 March 2024

Can a association collect money for association chit and money lending activities?

Our association collected money in the name of association chit. The money collected never kept in the associaton account about 70 laks collected as we asked why it is not kept in associon account the reply was if it accounted, huge tax to be paid. Again they have collected in the name of corpus fund and gave it for interest. What we should do to curb this type of illegal activities?


 2 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     14 March 2024

Complain to the Director of Enforcement of your district.

T. Kalaiselvan, Advocate (Advocate)     14 March 2024

The association cannot run a chit fund in the name association because it is not an activity permitted in the bylaw nor it has an approval of the general body.

You should have raised objection when they demanded subscripttion from you at the initial stage itself

If you do not get back your money then you can very well fight against them thorugh court oif law

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