Unauthorized chit fund company

Section 4 imposes a certain amount of administrative burden on the promoters of the Chit Fund in that they have to approach the State Govt. every time they float a Chit for prior sanction but that by itself would not amount to unreasonable restriction which would come in their way of carrying on their legitimate business.

Thanks for your reply sir,

Will the definitions of "Depositor" and "Financial establishments" satisfy its criteria w.r.t this case?

The complainant mentioned that he was active in some chits of the firm and lent the accused some amount in the meanwhile. He quoted  that accused used to run unauthorised chits in his complaint w/o  his knowledge. How come this narration attract AP PDFE act 1999 sections 3 & 5?