Section 87 of The Chit Funds Act, 1982
The State Government may, in consultation with the Reserve Bank, by notification in the Official Gazette, and subject to such conditions as may be specified in the notification, exempt any person or class of persons or any chit or class of chits from all or any of the provisions of this Act.
Summary
- This provision gives the State Government the power to grant exemptions from the rules of this Act.
- Exemptions can be granted to specific persons, classes of persons, specific chits, or classes of chits.
- The State Government must consult with the Reserve Bank of India before granting any exemption.
- Any exemption must be officially published by notification in the Official Gazette and can be subject to specific conditions.
Practical examples
FAQ
1. How is an exemption under Section 87 officially announced?
The exemption must be published as a notification in the Official Gazette.
2. What can be exempted under this provision?
The State Government can exempt any person, class of persons, any individual chit, or class of chits from all or any of the provisions of the Act.
Test yourself
Q1.Under Section 87 of The Chit Funds Act, 1982, whose consultation is mandatory before the State Government can exempt any person or chit from the Act?
Q2.Under Section 87 of The Chit Funds Act, 1982, how must an exemption be officially communicated to the public?
Q3.Under Section 87 of The Chit Funds Act, 1982, what can the State Government exempt from the Act's provisions?
Q4.Under Section 87 of The Chit Funds Act, 1982, can an exempted class of chits run completely free of any regulatory oversight?