MISCELLANEOUSCentral

Section 84 of The Chit Funds Act, 1982

Power to delegate.

The State Government may, by notification in the Official Gazette, direct that any power (other than the power to hear appeals or to make rules) exercisable by it under this Act or the rules made thereunder may be exercised also by any officer of the State Government subject to such terms and conditions, if any, as may be specified therein. STATE AMENDMENTS [Karnataka Amendment of section 84.--In section 84 of the principal Act, the words “to hear appeals or” shall be omitted. [Vide Karnataka Act 2 of 2008, s. 3.]

Summary

The State Government has the power to delegate (pass on) its authority under the Act to lower-level officers.
This delegation must be officially announced by publishing a notification in the Official Gazette.
The State Government can delegate almost any of its powers under the Act or its rules.
However, the power to make rules cannot be delegated.
The power to hear appeals also cannot be delegated under the general central law.
Any delegated power can be made subject to specific terms and conditions specified in the official notification.

Practical examples

1On October 1, 2025, the State Government of Kerala decides that the power to approve extensions of chit durations should be handled by the Director of Chits rather than the State Cabinet. It publishes a notification in the Official Gazette delegating this specific power.

2The State Government tries to delegate its authority to write new rules for chit management to a local district committee. An expert points out that under Section 84, the power to make rules is strictly non-delegable, so the State Government must write and issue the rules itself.

FAQ

1. How does the State Government delegate its powers under Section 84?

The State Government delegates its powers by issuing and publishing a notification in the Official Gazette.

2. Which powers of the State Government cannot be delegated under Section 84 of the Central Act?

The power to make rules and the power to hear appeals cannot be delegated under the general Central Act provision.

3. Can the State Government impose limits on a delegated power?

Yes, Section 84 allows the State Government to make the delegation subject to specific terms and conditions specified in the official notification.

Test yourself

1.Under Section 84 of The Chit Funds Act, 1982, which of the following powers is the State Government strictly prohibited from delegating?

2.Under Section 84 of The Chit Funds Act, 1982, what official method must the State Government use to direct that its powers be delegated?

3.Under Section 84 of The Chit Funds Act, 1982, to whom can the State Government delegate its exercisable powers?

4.Under Section 84 of The Chit Funds Act, 1982, what else is excluded from delegation besides the power to make rules under the general Central Act?

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