Supreme Court nullifies Kerala Chit Fund Act

NEW DELHI: The Supreme Court on Tuesday nullified the Kerala Chitties Act, 1975, declaring that the Central Chit Funds Act, 1982, is applicableto all chit fund firms operating in the country.The clarification by the Supreme Court on the validity of Central and State Actis considered to be beneficial for the investors as there would be a strict control over the chit companies, a fivemember Bench, headed by Chief Justice S H Kapadia, held. The Kerala Chitties Act was enunciated in 1975 to control the activities of chit companies. Though the Central Government came upwith a new law in 1982, it was not implemented in Kerala as the order regardingit was not issued.