Is it chit fund or not


Hello Friends,

I have a query regarding a concern working as Follows:

It has 10 members & all contribute Rs. 1000. Like Kitty a draw will be there. One by one will be entitled to prize.

For Example if A is person won draw in First month, then he will be entitled prize in kind & he will not be liable to pay for next 11 instalments.

I have read Chit Fund act 

Under definition clause (1) such tranactions are not chit transaction

So can anybody tell me under which act such transactions will be covered??

Thanks

 
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