BENGALURU: Vishnuprasad paid Rs 12,500 every month for 40 months to complete a Rs 5 lakh chit fund scheme run by Samith Chits Pvt Ltd. But after he won the bid in May 2025, the company paid him only Rs 20,000, leaving Rs 4,07,940 unpaid.The consumer commission has now directed the company to pay the outstanding amount with 6.5% annual interest from the date the consumer complaint was filed until realisation. It has also ordered Samith Chits to pay Rs 3,000 towards proceedings costs, holding that the failure to pay the prize money amounted to deficiency in service and an unfair trade practice.President Syed Anser Khaleem and two members pronounced the order on September 28, 2026.According to the complaint, Vishnuprasad’s chit scheme ended in June 2025. After he successfully bid for the chit in May, the company issued two cheques towards the amount due — one for Rs 1 lakh, dated July 5, 2025, and another for Rs 3,27,940, dated July 15, 2025.Vishnuprasad presented the first cheque on July 17 through his bank account in Ramamurthy Nagar. It was returned unpaid with the endorsement “Funds Insufficient”. The second cheque, presented on July 24, was also dishonoured for insufficient funds.After receiving only Rs 20,000 despite follow-ups, Vishnuprasad issued a legal notice under Section 138 of the Negotiable Instruments Act, which deals with cheque dishonour. He also initiated two cases before the Additional Chief Judicial Magistrate court in Bengaluru, numbered CC No. 72718/2025 and CC No. 72660/2025, before approaching the consumer commission.The commission examined Vishnuprasad’s affidavit and supporting documents, including the company’s brochure, its statement, copies of the cheques and records confirming their dishonour.Samith Chits did not appear despite being served notice and was placed ex parte on July 24, 2026. With the complaint and supporting evidence undisputed in the consumer proceedings, the commission held the company liable for failing to pay the outstanding chit amount.It also clarified that the cheque-dishonour cases did not prevent Vishnuprasad from seeking relief under consumer protection law. Citing Section 100 of the Consumer Protection Act, 2019, the commission noted that remedies under the Act are in addition to those available under other laws.Samith Chits has been directed to comply within 30 months of receiving the order and submit a compliance report to the commission within 45 days of receipt.
