Enrolment
You can enrol in DCPL chit either by personally visiting our office or through DCPL Agent/Adviser. We are strictly enforcing Know Your Customer (KYC) norm at the time of enrollment and customers are required to bring one passport size photograph, PAN card, income proof, address/identity proof for enrollment
Chit Group
Chit is a financial product which blends the advantages of both investment and borrowing. Chit Groups for fixed period (months) with different denominations will be started from time to time as per the demand from the public.
Dividend
The discount forgone at every auction will be distributed equally to all the subscribers as dividend after retaining 5% of the chit value towards Foreman’s commission and GST as applicable. Subscriber are supposed to pay gross monthly installment minus the dividend for the corresponding month. First installment is to be paid full and dividend starts from 2nd installment onwards
Auction
Auctions will be conducted at office every month on the fixed date and time. The date and time shall remain same till the termination of the chit except on public holidays due to reasons beyond the control of the foreman wherein auctions will be conducted on the next working day, the date and time of the auction will be informed. The bidding starts from 5% of the chit value which is Foreman’s Commission and maximum bidding percentage is 40%. The successful bidder is entitled to get the prize money equal to chit value minus the bidding amount (discount forgone) which includes Foreman Commission @ 5%. In case if more than one subscriber is interested to take the chit at 40%, successful bidder will be decided by lucky draw.
How to Participate in Bidding?
Only those subscriber whose payments are up-to-date will be allowed to participate in the bid. Bidding can be done either in person or through authorized person or by proxy letter to the Foreman. In case of cheque payment, subscriber will be allowed for bidding only if the cheque is realized before the auction time. Hence subscribers who make the payment by cheque are advised to pay at least 3 days before the auction date to avoid confusion. Bid offers over telephone / e-mail are not accepted.
Monthly Payment
The details of bid and amount payable will be intimated to the subscriber every month through SMS or other mode to enable them to remit the installment amount. However non-receipt or delay of intimation for any reasons shall not be the reason for delayed payment or non-payment. Payment can be made by cash/ local cheque / DD at our office and through online transfer also
Delayed or Non Payment
In case of delayed payment by the prized subscribers, dividend will be forfeited besides charging interest as applicable for the delayed period. Non-payment by the non-prized subscriber would attract penal interest as applicable.
Non-Prized Chits
Non-prized pass book shall be pledged as security for future liability.
Release of Prized Money
The prized money to the successful bidder becomes due immediately after the auction date and same will be released if adequate security as per company norms is produced to cover the future liability of the chit well in time. Prize money will be released by way of ‘Account Payee’ cheque/NEFT only. The prized subscriber/successful bidder shall provide security of any one of the following types either single or in combination of the company.
Immovable Property
Property of the prized subscriber situated within MCC limits approved by the competent authority like MUDA, Planning Authority etc will be accepted as security. Property with laminated original documents, Gram Panchayat/ agriculture properties, revenue land and also property having B-Khatha will not be accepted. The property papers will be subjected to legal opinion and valuation through our empanelled advocate and valuer respectively followed by spot inspection by the Foreman to assess the value and acceptability of the property. Only 50% of the market value as given by the valuer in his report will be considered by the company. The property will have to be register mortgaged to DCPL at the concerned Sub-Register’s Office. Charges towards documentation, legal opinion, valuation, applicable stamp duty for mortgage registration and other related charges must be borne by the subscriber. If the property is owned by a person other than the subscriber, the property owner should also stand as a guarantor. In addition to the property, subscriber must also deposit 5 post dated cheques towards future installments
Personal Guarantor :
The Personal Guarantor will be consider only when liability is less than 2 lakh.
Govt Security Bonds :
The company will consider the assignment of govt bonds like. LIC,NSC,FD bonds & Bank guarantee etc.
Premium Customer :
Premium customer are our pride customer, who are with us for many years. with many group of chits and paid their regular subcription ontime.The company will consider upto 1.50lakh future Liability by taking guarantor of one family member.
Transfer of Chits
If a non-prized subscriber wishes to discontinue the chit which is up-to-date in payment voluntarily, such chit would be transferred to any other interested person who is ready to take such chit. In such case transferor/transferee must fulfill transfer norms as stipulated by the company. Subscribers who are already prized (successful bidders) cannot surrender their chit and will have to claim the prize money by producing adequate security. Prized subscriber must continue to remit the installments regularly on or before the due date as any delay in payment will make them ineligible to get the dividend.
Substitution Chits
If a non-prized subscriber becomes defaulter continuously for a minimum of 2 months, such chit would be substituted with any other interested person who is ready to take discontinued chit by clearing all the defaulted payments. How ever company cannot confirm the time period within which substitution will be done as it depends purely on when the company gets a replacement. The refund of amount paid by the original subscriber will be made only after substituted subscriber bids and receives prize money by offering security. Such refund will be dealt as per the chit agreement.
Re-Auction
In case of the successful bidder / prized subscriber fails to claim the prize money within 15 days from the date of auction, re-auction will be conducted as per the Chit Fund Acts 1982. The auction difference / loss to the company, if any, after the re-auction will be recovered from such subscriber. However conducting re-auction will be at the sole discretion of the company
The above norms are informative and subject to change from time to time.
Would you like to speak to one of our financial advisers over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you would prefer.
