law: Chit Funds Act, 1982
  7.Filling
  
  of chit agreement.-
  (1)Every
  
  chit agreement shall be filed in duplicate by the foreman with the Registrar.
  (2)The Registrar shall retain one copy of the chit agreement and return the
  
  duplicate to the foreman with an endorsement that the chit agreement has been
  
  registered:
  
  Provided that the Registrar may refuse to register the chit agreement on
  
  may one or more of the following grounds, namely:-
  (a)that
  
  the security offered by the foreman under section 20 is insufficient;
  (b)that the foreman had been convicted of any offence under this Act or under any
  
  other Act regulating chit business and sentenced to imprisonment for any such
  
  offence;
  (c)that
  
  the foreman had defaulted in the payment of fees or the filing of any statement
  
  or record required to be paid or filed under this Act or had violated any of
  
  the provisions of this Act or the rules made there under;
  (d)that
  
  the foreman had been convicted of any offence involving moral turpitude and
  
  sentenced to imprisonment for any such offence unless a period of five years
  
  has elapsed since his release:
  Provided further that before refusing to register a chit under the first
  
  proviso, the foreman shall be given a reasonable opportunity of being heard.
  (3)Every
  
  endorsement made under sub-section (2) shall be conclusive evidence that the
  
  chit is duly registered under this Act and the registration of a chit shall
  
  lapse if the declaration by the foreman under sub-section (1) of section 9 is
  
  not filed within three months from the date of such endorsement or within such
  
  further period or periods not exceeding three months in the aggregate as the
  
  Registrar may, on application made to him in this behalf, allow.