Section 82 of the Chit Funds Act, 1982: Power to Enter, Search and Seize Documents

Section 82 gives the Registrar, or an officer authorised by the Registrar, statutory powers to enter and search a place where a chit is suspected to be conducted in contravention of the Chit Funds Act, 1982 and to seize relevant books, registers, accounts or documents.

Current-law note: The text of Section 82(3) still refers to the Code of Criminal Procedure, 1973. The Code was repealed by Section 531 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), which came into force on 1 July 2024. Under Section 8 of the General Clauses Act, 1897, references in another enactment to repealed and re-enacted provisions are ordinarily construed as references to the corresponding re-enacted provisions, unless a different intention appears. Pending matters are also subject to the specific savings in Section 531 of the BNSS.

Text and meaning of Section 82

Section 82(1) - Entry, search and seizure

If the Registrar or an officer authorised by the Registrar has reason to suspect that a person conducts, or is responsible for conducting, a chit at any place in contravention of the Act, the officer may enter and search that place at a reasonable time. The reasons must be recorded in writing. Books, registers, accounts or documents considered necessary may be seized.

Section 82(2) - Police assistance

The Registrar or authorised officer may seek assistance from the officer in charge of a police station and may take police officers along to assist in carrying out the duties under sub-section (1).

Section 82(3) - Procedure governing the search

The enacted text requires searches under sub-section (1) to be conducted in accordance with the Code of Criminal Procedure, 1973. For present-day application after 1 July 2024, the repeal and savings provisions of the BNSS, 2023 and the statutory rule on construction of references to repealed and re-enacted laws should also be considered.

Conditions before the search power is exercised

Competent authority: the power belongs to the Registrar or an officer authorised by the Registrar.
Reason to suspect: there must be reason to suspect that a person is conducting, or is responsible for conducting, a chit in contravention of the Act.
Written reasons: the reasons for exercising the power must be recorded in writing.
Reasonable time: entry and search must take place at a reasonable time.
Relevant material: the provision authorises seizure of books, registers, accounts or documents as may be necessary.
Procedural safeguards: the search must comply with the applicable criminal procedure governing search and seizure.

Why Section 82 is important

The provision is an enforcement mechanism under the Chit Funds Act. It enables the regulatory authority to inspect a place where an unlawful or non-compliant chit is suspected and secure records that may be necessary for regulatory or legal action. At the same time, the requirement to record reasons in writing and to follow the governing search procedure places statutory limits on the exercise of that power.

Official legal resources

For the authoritative statutory text and current criminal procedure framework, refer to the official India Code versions of the Chit Funds Act, 1982, the Bharatiya Nagarik Suraksha Sanhita, 2023, and the General Clauses Act, 1897.

This page is a general legal information resource. State amendments, rules, notifications and the facts of a particular matter may affect the applicable legal position.