A Bengaluru consumer commission has ordered Samith Chits Pvt Ltd to pay a subscriber Rs 4,07,940 plus interest after two cheques issued toward his chit prize were dishonoured. The September 28, 2026 chit fund ruling also directed the company to pay Rs 3,000 in proceedings costs.

Key Takeaways

  • The subscriber paid Rs 12,500 a month for 40 months into a Rs 5 lakh scheme and successfully bid for the chit in May 2025.
  • The commission awarded 6.5% annual interest on the outstanding amount from the filing date of the consumer complaint until payment.

Chit fund ruling follows unpaid cheques

Vishnuprasad joined a Rs 5 lakh chit scheme run by Samith Chits, paying Rs 12,500 each month over 40 months. The chit period ended in June 2025, after his successful bid made him eligible for the prize amount under the agreement.

The company issued two cheques toward the payment: Rs 1 lakh dated July 5, 2025, and Rs 3,27,940 dated July 15, 2025. Both were returned unpaid for insufficient funds. The commission recorded that Samith Chits later paid Vishnuprasad Rs 20,000 but left Rs 4,07,940 outstanding.

Why the commission allowed the complaint

The Bangalore 1st Additional District Consumer Disputes Redressal Commission found deficiency in service and an unfair trade practice. Samith Chits did not appear despite receiving notice and was placed ex parte, leaving the allegations and evidence undisputed in the consumer proceedings.

Vishnuprasad had also initiated separate cheque-dishonour proceedings. The commission held that those cases did not prevent him from seeking a remedy under consumer protection law, citing the Consumer Protection Act, 2019 and a 2024 Supreme Court decision concerning chit subscribers.

Payment and compliance directions

The commission directed Samith Chits to pay the outstanding Rs 4,07,940 with interest at 6.5% per annum, calculated from the date the consumer complaint was filed until realisation. It also ordered Rs 3,000 in proceedings costs.

The order directs the company to comply within 30 months of receiving it and to submit a compliance report within 45 days of receipt.

Next milestone

The next specified milestone is the compliance report, due within 45 days of the company receiving the order.

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