 bill no 29 of 2014 the chit funds (amendment) bill, 2014 byshri arjun meghwal, mpa billfurther to amend the chit funds act, 1982be it enacted by parliament in the sixty-fifth year of the republic of india as follows:— 1  this act may be called the chit funds (amendment) act, 2014short title2 in section 4 of the chit funds act, 1982, in sub-section (1), in the proviso,—amendment of section 440 of 19825(i) for the words "within twelve months", the words "within three months" shall be substituted; and(ii) for the words "six months", the words "three months" shall be substituted statement  of  objects  and  reasonschit funds frauds have become order of the day there is an immediate need to check the increasing numbers of chit funds frauds in order to save the hard earned money invested in such chit funds by the common manat present chit funds can be floated without prior approval of the state government concerned as per section 4 of the chit funds act, 1982, a chit fund is required to get registered within a period of twelve months from the date of its sanction or within such further period or periods not exceeding six months in the aggregate as the state government may allow therefore, it is necessary to cut short this period to three months from the date of sanction, so that the persons responsible for the conduct of a chit do not prolong the registration of chit to commit fraudthe bill, accordingly, seeks to amend the chit funds act, 1982 with a view to reduce the time frame from twelve months to three months for registration of a chit fund under the acthence this billnew delhi;arjun  meghwaljune 11, 2014 annexure extract from the chit funds act, 1982 (40 of 1982)       chapter ii registration of chits, commencement and conduct of chit business4 (1) no chit shall be commenced or conducted without obtaining the previous sanction of the state government within whose jurisdiction the chit is to be commenced or conducted or of such officer as may be empowered by that government in this behalf, and unless the chit is registered in that state in accordance with the provisions of this act:prohibition of chits not sanctioned or registered under the actprovided that a sanction obtained under this sub-section shall lapse if the chit is not registered within twelve months from the date of such sanction or within such further period or periods not exceeding six months in the aggregate as the state government may, on application made to it in this behalf, allow        lok  sabha—————— a billfurther to amend the chit funds act, 1982————(shri arjun meghwal, mp)gmgipmrnd—698ls(s-4)—27-06-2014