Chitfund business

Greetings!

As per your concern, i would like to mention the case of V.Sundaram vs The Deputy Superintendent Of Police,Kancheepuram District. Herein the petitioners with the co-accused were conducting had collected subscripttions from 35 persons to a tune of Rs.1,66,54,015/- between December 2010 and May 2013, and thereafter, they had defaulted in making repayments. 

The police completed the investigation and filed Final Report before the Chief Judicial Magistrate for offences under Sections 120B, 420 read with 34, 406, 506(i) IPC and Section 4 read with Section 7 of the Chit Funds Act, 1982 

Section 120 B- Criminal conspiracy

Section 420- Cheating and dishonestly inducing delivery of property

Section 4 of Chit fund Act- Prohibition of chits not sanctioned or registered under the Act

Hope this helps 

Regards