Terms & Conditions

1 Acceptance of Terms

By signing the chit agreement and/or making your first monthly contribution, you acknowledge that you have read, understood, and agree to be bound by these Terms and Conditions, our Privacy Policy, and all applicable provisions of the Chit Fund Act, 1982.

These terms constitute a binding legal agreement between you ("Member") and Sunitha Chit Funds Pvt. Ltd. ("Company," "we," or "us"). If you do not agree to these terms, you should not enroll in any chit group.

2 Eligibility for Membership

To be eligible to join a chit group with us, you must:

• Be a resident Indian citizen aged 18 years or above
• Provide valid KYC documents including Aadhaar card and PAN card
• Have a valid bank account in your name for prize and dividend payments
• Not have any outstanding defaults with our company or any other registered chit fund
• Be capable of entering into legally binding contracts under applicable Indian law

The Company reserves the right to accept or reject any membership application at its sole discretion, without being required to provide reasons.

3 Chit Group Enrollment

Upon acceptance of your application, you will be assigned to a chit group with the following defined parameters:

• Chit Value: The total prize amount auctioned each month
• Number of Members: Total members in the group (equal to the number of months)
• Monthly Contribution: Chit Value ÷ Number of Members
• Duration: Equal to the number of members in months
• Management Commission: 5% of the chit value per month, as permitted under the Chit Fund Act 1982

All chit group parameters will be clearly stated in your individual chit agreement, which you must sign before participating in any auction.

4 Monthly Contributions

As a member, you are obligated to pay your monthly contribution on or before the due date specified in your chit agreement. The following conditions apply:

• Contributions must be paid in cash at our office or via bank transfer/UPI to our designated account
• A grace period of up to 5 working days may be granted at the Company's discretion
• Late payments may attract a penalty as specified in your individual chit agreement
• Members who have already received the prize amount (prized members) must continue paying their monthly contributions without fail for the remainder of the chit duration
• Payments once made are non-refundable except as specifically provided under the Chit Fund Act 1982

5 Auction Process

Monthly auctions are conducted transparently in accordance with the Chit Fund Act 1982:

• Auctions are held on the date specified in your chit agreement, typically monthly
• All non-prized members are eligible to bid in each monthly auction
• The maximum permissible bid (discount) is 35% of the chit value
• The member bidding the highest discount (lowest prize amount) wins the auction
• In case of equal bids, the winner is determined by draw of lots
• No member may receive the prize more than once during the chit duration
• The foreman (Company) is entitled to receive the prize in any month without deduction of discount, as permitted by law

6 Prize Disbursement

Upon winning the auction, the prize amount will be disbursed as follows:

• Prize amount = Chit Value − Winning Bid Discount
• Disbursement is made within 5–7 working days of the auction date
• Payment is made via NEFT/RTGS/Cheque to the member's registered bank account, or in cash for amounts within legal cash transaction limits
• The member must provide post-dated cheques or other security as required by the Company for future monthly contributions
• The Company may deduct any outstanding dues before disbursing the prize amount

7 Dividends

Each month, after deducting the Company's management commission (5%), the remaining discount from the winning bid is distributed equally among all members as a dividend:

• Monthly Dividend = (Winning Bid Discount − Management Commission) ÷ Number of Members
• Dividends are credited to members' accounts or paid at the time of contribution collection
• The Company does not guarantee any minimum dividend amount, as dividends depend on the monthly auction outcome
• Prized members receive dividends in the same manner as non-prized members

8 Default & Non-Payment

In the event of non-payment of monthly contributions:

• The Company may restrict a defaulting member from participating in auctions
• The Company may initiate legal proceedings to recover dues, including interest and costs
• A member who has received the prize and subsequently defaults may be held liable under the Chit Fund Act 1982 and applicable civil/criminal law
• The Company reserves the right to adjust dividends payable against outstanding contributions
• Defaulting members may be removed from the chit group as per the provisions of the Chit Fund Act 1982

9 Termination & Withdrawal

Withdrawal from a chit group before completion is governed by the Chit Fund Act 1982 and the following conditions:

• Members who have not yet received the prize may apply for withdrawal in writing
• The Company shall process such requests as per applicable law and the individual chit agreement
• Members who have received the prize cannot withdraw and must continue paying contributions until the chit expires
• Refunds, if applicable, will be made after deducting all outstanding dues, penalties, and administrative charges

10 Nominee & Succession

• Each member must nominate a beneficiary at the time of enrollment
• In the event of a member's death, the nominee may continue the membership or withdraw the accumulated value per the Chit Fund Act 1982
• The Company shall not be held responsible for any dispute among legal heirs regarding the chit proceeds

11 Liability Limitations

The Company's liability to any member shall not exceed the amount of contributions paid by that member. The Company shall not be liable for:

• Loss arising from events beyond its reasonable control (force majeure)
• Errors in member-provided information
• Delays in payment due to bank processing times
• Any indirect, special, or consequential damages

12 Governing Law & Disputes

These Terms and Conditions shall be governed by and construed in accordance with the laws of India, including the Chit Fund Act 1982 and applicable Karnataka state regulations.

Any disputes arising out of or in connection with chit fund operations shall first be attempted to be resolved through mutual discussion. If unresolved, disputes shall be subject to the jurisdiction of courts in Sindhanur / Raichur District, Karnataka.