Date:08/11/2009 URL: http://www.thehindu.com/2009/11/08/stories/2009110857260200.htm

Tamil Nadu - Tiruchi

Forum seeks enactment of uniform Act

Staff Reporter

— Photo: R. Ashok

Regulation: C. Rajagopalan, president, Tamil Nadu Chit Fund Companies Association, speaking at a seminar in Tiruchi on Saturday.

TIRUCHI: The need for enacting and implementing an uniform Act for protecting the interest of chit fund companies by all States was underlined by the speakers at a seminar on the ‘role of chit funds in the growth of Indian economy’ organised jointly by the Tamil Nadu Chit Fund Companies Association, the Incorporated Chit Funds Association and the Institute for Financial Management and Research, here on Saturday.

The Secretary of the Tamil Nadu Chit Fund Companies Association, M. Krishna Bhaarathy, said that although Tamil Nadu had already implemented an Act, in accordance with the Central Chit Fund Act, a few other states were yet to implement it. Non-enactment of the Act in these adjoining states often resulted in the non-execution of awards passed in Tamil Nadu, he said.

The state president, C. Rajagopalan wanted decentralisation of the procedure for filing of a few records. Presently, the chit fund records such as chit agreement, minutes and prior sanction order had to be filed at the office of the District Registrar. He wanted decentralisation in the system, pleading for filing of the records at the nearest office of the Sub-Registrar.

The president of the Incorporated Chit Funds Association, M. Thangavelu, wanted expeditious delivery of copy of awards passed at the end of the arbitration proceedings. He said that the serious delay in the release of the awards led to either sale or causing some encumbrance to the property pledged.

The Legal Advisor of the All India Association of Chit Funds, R. Balakumar, said that the Revenue Department should be further strengthened with additional manpower and infrastructure for effective utilisation of the Revenue Recovery Act for execution petitions.

Presently, for want of infrastructure at Revenue Departments, all the execution petitions were handled by the civil courts.

A resource person from the Indian School of Business, Hyderabad, Mudit Kapoor, the Chairman of Seminar Steering Committee, Y.S. Mathivanan spoke.

A special interaction session was held in which the Additional Inspector General of Registration, Chennai, V. Chenna Kesavalu, clarified the participants’ doubts.