https://www.taxtmi.com/caselaws?id=152351 Section 2(e) of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 was construed in its statutory and legislative context as targeting schemes that combine collection of subscriptions with a prize, gift, or chance element and the mischief of gambling-like inducement. A conventional chit or a pure recurring deposit arrangement was not brought within the prohibition merely because subscriptions were collected and refunded. On that construction, a scheme lacking any prize or chance feature could not be treated as a prize chit, and the Endowment Certificate Scheme was held to fall outside the Act. en-us Thu, 22 Jan 1987 00:00:00 +0530 Wed, 18 Jun 2025 16:13:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=152351 Section 2(e) of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 was construed in its statutory and legislative context as targeting schemes that combine collection of subscriptions with a prize, gift, or chance element and the mischief of gambling-like inducement. A conventional chit or a pure recurring deposit arrangement was not brought within the prohibition merely because subscriptions were collected and refunded. On that construction, a scheme lacking any prize or chance feature could not be treated as a prize chit, and the Endowment Certificate Scheme was held to fall outside the Act. Case-Laws Companies Law Thu, 22 Jan 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=152351