ismailg aralikatti 03 August 2020

CHIT FUND SURETY problems

Hi everyone,
I ve given a surety for an amount of Rs.5lacs for surety
and I've been saving some amount with Chit Fund
now I went to withdraw that amount they are informing that you cannot claim the amount
as you have given surety for so much amount and that borrower's legal heir not deposited the amount
how may proceed further please guide?

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4 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 03 August 2020

Yes. Usually, chit fund companies will not repay your amount as you are security for a borrower. However complaint to the Assistant Registrar of Chits of your District.

Dr J C Vashista (Advocate) 04 August 2020

How you can demand refund of security amount deposited on behalf of borrowers till it is substituted by another guarantor.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 04 August 2020

Having given Surety, you are liable to repay the amount to the Chit Fund and if it is not paid they withholding your amount is perfectly OK. Borrower's Legal Heir not deposited the amount as informed by the Chit Officials? In any case, please contact your friend on whose behalf you gave surety or his Legal Heirs as the case may be and explain the position to them and impress upon him/them to do the needful to pay the amount to Chit Fund Company. If the Chit Fund Company has adjusted your amount to your Friend's debt, you have to recover the amount from your Friend or his legal heirs.