Chit funds body in Kerala cries foul

All-Kerala Chitty Foremen's Association (AKCFA) today alleged the ongoing operation against illegal money lenders was being used by a section of police and Registration department officials to harass chit companies registered under the Indian Companies Act, 1956.
Association's Working Chairman P D Jose welcomed the 'Operation Kubera', but said chit companies operating from Faridabad were being asked to submit registration documents.
Talking to reporters here, he claimed no registration of chits launched from Faridaba was needed as the Central Chit Funds Act, 1982 was not applicable there.
Thousands of chits were commenced from Haryana from 1982 to 20l2, he said contending that it was arbitrary to demand registration certificates for them.

Jose claimed the Kerala High Court in 2005 and the Supreme Court in 2012 had made it clear that there was no need of registration of chits launched from Haryana before 2012.
He said that only money-lenders charged cut-throat interest from borrowers and chit companies were not into money lending business.