Virchakra Chits Pvt. Ltd. is a company engaged since its incorporation in the year 1990 in promoting and operating various denominations of Chit Groups as per the provisions of 'The Chit Fund act' 1982 and is a 'Legalized Chit Company'.
Chit Law The government of India passed in Parliament an enactment called The Chit Fund Act 1982 in 1984. The act came into existence in the State of Karnataka from 26.01.84 The act is a uniform enactment, common throughout the Indian territory.
Salient features of the Chit Fund Act 1982
No person, firm or company can operate chits without obtaining a Licence from Joint Registrat of chits.
The company conducting the Chits must deposit by way of Fixed Deposit with the Joint Registrar of Chits an amount equal to the Chit Value proposed to be conducted by it only then permission to start the Chit Group will be granted.
There is a ceiling of Bid/Auction for the Chit to a maximum of 30 percent of the Chit Value and minimum of 5%.
The registrar of Chits is a supervisory body which controls and govern the operation of Chits.
The various section of the Chit Fund Act clearly define all aspects of operation of chits and hence there is no possibility of loopholes contravene or circumbate the Chit fund act.
Along with the control executed by the Registrar of Chits, The Registrar of Chits, the Registrar of companies and Reserve Bank of India also have control and regulatory laws to check unlawful activities of unscrupulous operators.
The maximum commission permitted to Chit operators is limited to only 5%.
Chits & Benefits
A chit provides a good source of finance not only savings to salaried employees but for different types of people. viz., small investors, businessmen, small scale industrialists etc. It also provides a means of savings for contingencies. A chit is therefore a good medium for persons desirous of saving as well as people who like to borrow to meet expenses on special occasions like marriages, construction of house etc. and funds for business or industry.
A person can choose a suitable chit group depending on his capacity to provide extra funds, month after month. The potential to pay regularly is the important criterion to choose a suitable chit group. | 
