VIJAYAWADA: The Stamps and Registration Department inspected six branches of Shriram Raghavendra Chits Private Limited in Nellore, Kurnool, Nandyal, Anantapur, Kadapa and Tirupati on Wednesday.
The officials reportedly found that the company had violated the provisions of the Chit Funds Act of 1982. In view of the lapses identified, instructions have been issued to all the deputy registrars and assistant registrars of chits to take necessary action against it.
The inter alia lapses and irregularities noticed during the inspections include delay in payment of prized bid amounts, cash on hand and cheques on hand did not match with the amount shown in the balance sheet. The same cheque number was used to pay for different and unrelated parties. They further noticed a huge delay in presenting cheques to banks, which were received on March 31, 2022. It was observed that there was a huge difference between the bid payable outstanding amount and the amount lying in the second account.
The balance sheet maintained by the company was not as per the Chit Funds Act, 1982. Further, 10% of the profit booked in each year has to be transferred to the statutory reserve. But, the company had not shown any such transfer to statutory reserve in the balance sheet.
Moreover, the balance sheet in Part-I and II as per Section 24 of the Chit Fund Act was not filed. Receipts and expenditure accounts and statements showing the assets and liabilities of individual chit groups were not filed as per Rule 28(2) of Andhra Pradesh Chit Fund Rules, 2008, the officials said.