THE PRIZE CHITS AND MONEY CIRCULATION SCHEMES (BANNING) KERALA RULES, 1979

[1][THE PRIZE CHITS AND MONEY CIRCULATION SCHEMES (BANNING) KERALA RULES, 1979

Rule - 1. Short title and commencement.

(1)     These rules may be called the 'Prize Chits and Money Circulation Schemes (Banning) Kerala Rules, 1979.

(2)     They shall come into force on 1st July, 1979.

Rule - 2. Definitions.

In these rules, unless the context otherwise requires-

(a)      "Act" means the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (Central Act 43 of 1978).

(b)      "Authorized Officer" means the Inspector General of Registration or such other officer as may be specifically authorized by the Government in this behalf by notification in the Gazette under S. 12;

(c)      "Form" means a form appended to these rules;

(d)      "Promoter" means a person conducting a prize chit or money circulation scheme at the commencement of the Act and desiring to continue such chit or scheme pursuant to sub-section (1), S. 12 for winding up the business relating to such chit or scheme;

(e)      "Scheme" means a money circulation scheme or, as the case may be, prize chit as defined in clauses (c) and (e) respectively of S. 2;

(f)       "Section" means a section of the Act;

(g)      "Subscriber" means a subscriber to a prize chit or money circulation scheme;

(h)     "Office of the Reserve Bank" means the Office of the Reserve Bank specified in Rule 10.

Rule - 3. Application for being notified under S. 11.

(1)     Any charitable or educational institution desiring to be notified under clause (d) of S. 11 shall make an application in that behalf in duplicate to the authorized officer in Form 1. Two copies of such application shall, simultaneously, be forwarded by such institution to the office of the Reserve Bank.

(2)     The authorized officer, shall forward one of the two copies of the application received by him to the Government.

(3)     On receipt of the copy of the application from the authorized officer, the Government may in consultation with the Reserve Bank notify such institution or refuse to notify such institution, having regard to the facts and circumstances of each case.

Rule - 4. Particulars of the schemes and winding up plans to be furnished by the promoter.

(1)     A statement of particulars of the schemes being conducted at the commencement of the Act together with a detailed plan for the winding up of the business of such scheme shall, as required by the first proviso to sub-section (1) of section 12 be furnished in duplicate by the promoter to the authorized officer on or before the 1st day of October, 1979 in Form II Two copies of such statement together with such plan shall, simultaneously, be forwarded by the promoter to the office of the Reserve Bank.

(2)     On receipt of the statement of particulars and the winding up plan referred to in sub-rule (1), a written acknowledgment In token of receipt thereof shall be issued by the authorized officer to the promoter.

(3)     The authorized officer shall maintain a register of promoters furnishing the statements of particulars and the winding up plans furnished under sub-rule (1).

Rule - 5. Extension of time for the winding up of the existing Schemes.

If for any reason, the promoter is unable to wind up the existing business of the schemes on or before the date specified by him in the winding up plan submitted by him under rule 4 or such other date as may be approved by the Government, and is desirous of continuing it for its beneficial winding up beyond the specified date or the approved date as the case may be, he shall, not later than four months before such specified date or such approved date submit to the authorized officer, an application in duplicate in Form III giving full details of such business which needs extension of time, the period for which the extension is sought and the reasons why such business cannot be finally wound up within the said specified date or such approved date. Two copies of the application shall, simultaneously be forwarded by the promoter to the office of the Reserve Bank:

Provided that the authorized officer may admit an application presented later than four months before the specified date or approved date, as the case may be, if he is satisfied that the promoter had sufficient cause for not presenting the application four months before such date. If for sufficient cause such application for extension of time could not be made within the 4 months period prescribed above applications made after the said period may also be accepted. Such application should be in Form No. III and the procedure prescribed in Rule 5 in respect of application in Form III should be followed in the case of this application also.

Rule - 6. Procedure for the disposal of the plan or application.

(1)     On receipt of the application containing the statement of particulars and the winding up plan submitted by the promoter under sub-rule (1) of rule 4 or as the case may be, of the application for extension of time submitted under rule 5, the Government shall cause it to be examined by the authorized officer or such other officer as it may deem fit.

(2)     On receipt of the comments of such officer and after consulting the Reserve Bank on the application for the winding up of the business of the existing schemes or, as the case may be, on the application for extension of time for the winding up of such business, the Government may approve or disapprove the application for the proposed winding up of such business or approve it with such modification as it deems fit and may grant extension of time for such period as may be considered desirable in the public interest and subject to such terms and conditions as may be deemed necessary or expedient (including the furnishing of security by the promoter for the repayment of the amounts due to the subscribers to the schemes) or refuse to grant extension of time:

Provided that no order modifying or rejecting the application containing the winding up plan or modifying or rejecting the application for extension of time for the winding up of the existing schemes shall be made without giving to the promoter an opportunity of being heard.

(3)     The Government shall maintain or cause to be maintained by the authorized officer a register specifying the particulars such as the names of the promoters, the statements of particulars and winding up plans submitted, the period for which the continuance of the scheme has been fixed in the plan or approved, the periods for which extension of time have been granted, or the applications for extension of time which have been rejected.

Rule - 7. Promoter to be informed.

The Government shall intimate the promoter the particulars of the terms and conditions subject to which the winding up plan has been approved or extension of time granted or its refusal to grant further extension of time. A gist of the modifications, if any, in the winding up plan or the extension of time, if any, granted or rejected shall be notified in the Gazette and particulars thereof shall, simultaneously, be advised by the State Government to the office of the Reserve Bank.

Rule - 8. Consequences of the approval of the plan or grant of extension of time to close the business of the Schemes.

During the period for which a winding up plan has been approved or the extension of time granted to wind up the business of the Scheme pursuant to any order passed by the State Government under sub-rule (2) of rule 6, is in force,-

(a)      the subscribers may remit money to the promoter in accordance with the winding up plan;

(b)      the promoter may receive monies from the subscribers and may also distribute prizes by way of cash or otherwise to the subscribers in accordance with the winding up plan; and

(c)      the subscribers may receive monies from the promoter in accordance with the winding up plan due to them under the schemes.

Rule - 9. Refund of monies or subscriptions collected by the promoter.

Where a promoter commits default in furnishing winding up plans as required by sub-rule (1) of rule 4, he shall refund within a period of six months from the date of such default the monies and subscriptions collected till the date of default.

Rule - 10. Miscellaneous.

For the purposes of these rules, the office of the Reserve Bank shall mean the office of the Deputy Chief Officer, Department of Non- Banking Companies, Reserve Bank of India, Bangalore Regional Office, 10-3-8 Nrupathunga Road, Bangalore 560 002.