THE CHIT FUNDS ACT, 1982 (Last Updated on 1st January, 2020). · REGISTRATION OF CHITS, COMMENCEMENT AND CONDUCT OF CHIT BUSINESS
Section 9 — Commencement of chit
(1)Every foreman shall, after all the tickets specified in the chit agreement are fully subscribed, file a declaration to that effect with the Registrar.
(2)As soon as may be after a declaration is filed under sub-section (1), the Registrar shall, after satisfying himself that all the requirements relating to sanction, registration of chit and other matters have been duly complied with, grant a certificate of commencement to the foreman.
(3)No foreman shall commence any auction or the draw of any chit or appropriate any 2[gross chit amount] unless a certificate of commencement referred to in sub-section (2) is obtained by him.