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The basic necessity of conducting a ‘Chitty’ is a group needy people called subscribers. the company conducting the chitty—brings these people together.
The fare for the scheme will be collected monthly from the subscriber according to the scheme terms and conditions
The chitty starts on an announced date, every subscriber come together for the auction/lot.It's also applicable if only one subscriber wants it.
When there are more than one person willing to take this minimum sum, lot are conducted and the ‘Lucky subscriber’ get the prize money for the month.
If there is no person willing to take the minimum sum, then a reverse auction is conducted where subscribers open-bid for lower amounts, The person bidding lowest sum get bid amount.
Chit dividend amount should be equally divided and given to all the customer.Chit is a good means of savings for any contingency requiring substantial amount. We are registered chit fund