Section 18 of the Chit Funds Act, 1982: Copies of Minutes to be Filed with Registrar
Updated: 15 September 2026
Section 18 of the Chit Funds Act, 1982 creates a specific post-draw filing duty. After every draw, the foreman must file with the Registrar a true copy of the minutes, certified as true by the foreman, within twenty-one days from the date of that draw.
Text and effect of Section 18
In substance, Section 18 requires the foreman to submit a certified true copy of the minutes of every draw to the Registrar within 21 days from the date of the relevant draw. The provision should be read with Section 17, which prescribes the preparation, contents and signing of the minutes.
What Section 18 requires
- A filing is required after every draw. The obligation is not limited to selected or disputed draws.
- The document filed must be a true copy of the minutes. The copy must correspond to the minutes prepared for the proceedings of that draw.
- The foreman must certify the copy as true. Certification identifies the foreman as the person responsible for the authenticity of the filed copy.
- The copy must be filed with the Registrar. The Registrar is the statutory authority administering the Act within the applicable jurisdiction.
- The statutory period is twenty-one days. The period runs from the date of the draw to which the minutes relate.
Meaning of important terms
Foreman
The foreman is the person responsible for conducting the chit in accordance with the Act and the chit agreement. For Section 18, the foreman has the direct statutory responsibility to certify the true copy and file it with the Registrar.
Registrar
The Registrar is the authority appointed or designated for administration of chit regulation under the Act in the relevant State or Union territory. Actual filing procedure, forms and electronic facilities may also depend on the rules and administrative system applicable in that jurisdiction.
Minutes of the proceedings
Section 17 deals with the minutes of every draw. It requires the minutes to be prepared and entered in the prescribed record immediately after closure of the draw and specifies the persons who must sign them. It also identifies particulars to be recorded, including the time and place of the draw, instalment number, subscribers present, person entitled to the prize amount, discount and other prescribed particulars.
How Sections 16, 17 and 18 work together
| Provision | Subject | Practical function |
|---|---|---|
| Section 16 | Date, time and place of conducting chits | Regulates the holding and conduct of the draw. |
| Section 17 | Minutes of proceedings | Requires preparation, entry, signing and specified contents of the draw minutes. |
| Section 18 | Copies of minutes to be filed with Registrar | Requires the foreman to file the certified true copy within 21 days of the draw. |
Compliance checklist for a foreman
- Conduct the draw in accordance with the chit agreement and Section 16.
- Prepare and complete the minutes in accordance with Section 17 immediately after closure of the draw.
- Ensure that the minutes contain the statutory and prescribed particulars and required signatures.
- Prepare a true copy of the completed minutes.
- Certify that copy as true.
- File it with the competent Registrar within twenty-one days from the date of the draw.
- Preserve proof of filing or acknowledgement in the chit records.
Important: Section 18 states the central statutory filing obligation. The mode of filing and additional procedural requirements can be affected by State or Union territory rules made under the Act. A foreman should therefore also check the rules and current instructions of the competent local Registrar.
Current legal position
The Chit Funds Act, 1982 is Central Act No. 40 of 1982. The Chit Funds (Amendment) Act, 2019 amended several provisions of the principal Act. Section 18, however, continues to state the twenty-one-day requirement for filing the certified true copy of the minutes of every draw with the Registrar.
Related provisions
Readers examining the compliance sequence may also refer to Section 15 - Alteration of chit agreement, Section 16 - Date, time and place of conducting chits, Section 17 - Minutes of proceedings, Section 19 - Restriction on opening of new place of business, and Section 20 - Security to be given by foreman.
Official legal sources
For authoritative verification, refer to the Chit Funds Act, 1982 on India Code and the Chit Funds (Amendment) Act, 2019 on India Code.