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Unable to pay the chit fund money what to do.
14-Dec-2023 (In Recovery Law)
I have been running chit funds n stepped into heavy loss n borrowed n paid the ppl and have paid interest for the same more than the principle amount. Now I'm exhausted n unable to pay back the principle .. need legal advice to take this further .
If you have borrowed from a bank as secured loan your property or security would be at risk of sale. You may request the bank for waiver of penal interest. That is the only solution. If you have borrowed from individuals or financial agencies, chances of compromise are least. Nothing could be done.
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Raghavendra Rao B.K.
Bangalore | 200+ Answers
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If you are running lisenced chit fund , then you are liable to pay the people's money.
If running chit fund without lisence then the people who had chit with you cannot claim any amount legally from you.
Already you have paid interest more than principle amount which itself sufficient for you to escape from criminal liability in case if they file criminal case under section 420 of PIC to police.
People who had chit with you though even if it is licensed chit fund running by you, you cannot pay interest, what you have already paid claim that it is principle amount , so you can escape from criminal and civil liability.
Regards from
Ravindra prasad
Advocate
If running chit fund without lisence then the people who had chit with you cannot claim any amount legally from you.
Already you have paid interest more than principle amount which itself sufficient for you to escape from criminal liability in case if they file criminal case under section 420 of PIC to police.
People who had chit with you though even if it is licensed chit fund running by you, you cannot pay interest, what you have already paid claim that it is principle amount , so you can escape from criminal and civil liability.
Regards from
Ravindra prasad
Advocate
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Adv. Ravindra Prasad
Kolar | 100+ Answers
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Hi, No information about which kind of agreement was given to your clients. You must keep all the evidence that shows your losses. Before giving any legal consultation we need to discuss about the quantum of deposits / losses.
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