I stood as a guarentor to a chit bidder who failed to pay his dues and i was taken to Civil Court to make good the payemnts due.I read both the Acts (central and AP state )and nowhere is there a mention of Guarentors except the prized bidder to provide security.The business is strictly between the Chit Foreman,the subscriber and the Registarr of Chits.Having people with no connection whatsoever with the Chit business as guarentors is an activity that should be barred.The Chit Comapnies either do busineess with confirdence in its subscribers or take security and not trouble the outsiders by incorparating the provisions of guarentee.
