Transparent Terms,
Unshakable Trust

• "Foreman" refers to Imbu Shankar Chits Pvt. Ltd., a company incorporated under the Companies Act and duly registered with the Registrar of Chits, Government of Karnataka, responsible for conducting and managing the chit fund.
• "Subscriber" means an individual, partnership, or corporate entity who has entered into a Chit Agreement with the Foreman and holds one or more tickets in a chit group.
• "Chit Value" refers to the total product of the monthly subscription amount multiplied by the duration (number of installments/subscribers) of the chit group.
• "Dividend" means the share of the total auction discount (bidding reduction minus the Foreman's statutory commission) distributed equally among all non-defaulting subscribers each month.
• "Prize Amount" refers to the net amount payable to the successful bidder after deducting the bid discount from the total Chit Value.

To participate in any chit scheme conducted by Imbu Shankar Chits Pvt. Ltd., prospective subscribers must fulfill rigorous Know Your Customer (KYC) verification in accordance with statutory directives:

• Submission of valid government-issued identity proof (PAN Card mandatory, along with Aadhaar Card, Passport, or Voter ID).
• Submission of valid proof of permanent and communication address in Karnataka along with passport-sized photographs.
• Subscribers must be legally competent to contract (minimum 18 years of age). Corporate entities must provide board resolutions authorizing participation.
• The Foreman reserves the absolute right to accept or reject any enrollment application without assigning arbitrary reasons, subject to credit verification and statutory limits.

• Payment Due Dates: Monthly subscription installments are due on or before the designated auction date of each specific chit group.
• Payment Modes: Contributions may be remitted via NEFT, RTGS, UPI, Nach Auto-Debit, or authorized branch payment. Subscribers are strictly advised to obtain official digital or physical receipts for every transaction.

Auctions are conducted monthly at the registered office or via secure digital bidding channels on the date and time specified in the Chit Agreement:

• Only non-defaulting subscribers who have paid all due installments up to date are permitted to participate in the bidding process.
• Statutory Bidding Cap: In strict compliance with Section 21 of the Chit Funds Act, 1982, the maximum discount/bid cannot exceed 30% (or statutory limits applicable under state rules) of the total Chit Value.
• Participants who wish to take part in Bid may either participate through video conference or submit the bid application at least one day before the auction.
• If multiple subscribers bid at the maximum permissible ceiling, the successful bidder (Prize Winner) shall be determined transparently by drawing lots in the presence of attending subscribers.

• Foreman Commission: As authorized under the Chit Funds Act, 1982, Imbu Shankar Chits Pvt. Ltd. shall receive a fixed commission of 5% of the total Chit Value for managing, administering, and guaranteeing the solvency of the chit group.
• Dividend Allocation: The total bid discount offered by the prized subscriber minus the 5% Foreman commission constitutes the total dividend pool. This pool is distributed equally among all eligible subscribers, directly reducing their next monthly installment payable.

Prior to disbursing the Prize Amount to a successful bidder, the Foreman must verify adequate security to safeguard the interests of all remaining subscribers:

• Prized subscribers must furnish acceptable security/sureties equal to the future liability (remaining unpaid installments of the chit value).
• Acceptable securities include: unencumbered immovable property situated in Karnataka, fixed deposits, bank guarantees, life insurance policies with surrender value, or verified salaried sureties with confirmed income tax returns.
• Upon successful scrutiny and legal verification of sureties, the Prize Amount shall be disbursed within statutory timelines

• Default Consequences: If a non-prized subscriber defaults on monthly subscription payments for consecutive installments, the Foreman reserves the right to issue a statutory notice and substitute the subscriber under Section 28 of the Act.
• Penalty & Interest: Delayed payments past the due date shall forfeit the monthly dividend share for that installment and incur a 2% late payment penalty interest as prescribed in the Chit Agreement bylaws.
• If a prized subscriber defaults on subsequent installments, the Foreman is legally empowered to initiate recovery proceedings against the subscriber and their sureties jointly and severally.

All disputes, differences, or claims arising out of or relating to the Chit Agreement, auction procedures, or statutory administration between the Subscriber and the Foreman shall be governed exclusively by the provisions of the Chit Funds Act, 1982:

• Disputes shall first be referred to statutory arbitration before the Registrar of Chits, Government of Karnataka, as mandated under Chapter XII of the Act.
• Subject to statutory arbitration procedures, the courts of competent jurisdiction in Bangalore, Karnataka shall have exclusive jurisdiction over any legal proceedings.