Terms & Conditions

1. Auction & Bidding Process

The chit auction shall be conducted by the Foreman. Bidding starts from the Foreman's commission (5%) and can go up to a maximum of 40% of the chit value. Only non-defaulting subscribers are eligible to participate. In the event of a winning bidder failing to provide security within 3 days, the auction may be cancelled at the Foreman's discretion.

2. Payment & Penalties

Installments must be paid on or before the auction date. For delayed payments:

• Non-Prized Members: A fine of 3 paise per rupee for the 1st month, increasing to 6 paise from the 2nd month.
• Prized Members: A penalty of 6 paise per rupee per month. If default continues for 3 months, the total future liability becomes payable immediately with 24% per annum interest.
• Cheques: Local cheques must be submitted 7 days in advance. Bounced cheques attract bank charges and administrative fees.

3. Prize Money & Security (Sureties)

Prize money is disbursed via RTGS/NEFT within 30 days of furnishing satisfactory security:

• Liability up to ₹3,00,000: Personal sureties (Salary earners/PSU employees) may be accepted.
• Liability above ₹3,00,000: Mortgage of urban immovable property is mandatory. The property value must be 1.5x the liability and situated within the operating radius of the Foreman's office.

4. Removal & Refund Policy

If a non-prized subscriber defaults for 3 consecutive months, they may be removed from the chit. Cancelled subscribers are entitled to their net contribution (paid amount minus dividends) less 5% of the total chit value (Sala) as damages for breach of contract, payable only at the end of the chit period.

5. Death of a Subscriber

The death of a subscriber does not discharge the liability. The nominee may continue the chit by executing a fresh agreement. If the nominee chooses to withdraw, the net contribution (minus 5% damages) will be paid at the end of the chit term.

6. Conduct & Termination

Ashta Siri Chits reserves the right to cancel membership for lack of trustworthiness, submission of fake documents, or unbecoming conduct. Any dispute not covered herein shall be governed by the Chit Funds Act, 1982 and Karnataka Chit Funds Rules.