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Kapadia Pravin 15 October 2019
The plain reading of the section along with the Notes on Clauses is unambiguous in the intention of roping in all loans or deposits that are received otherwise than by account payee cheques or account payee drafts.
it's applicable to chit funds
( unless Government notified it under exception category.)
Suresh Thiyagarajan (Student) 15 October 2019
1. Yes, accept with Pravin Ji. Any loans or advance or any other form of sum (in relation to the transfer of immovable property) if not made otherwise than by an account payee cheque or draft or through electronic clearing system will get hit by sec 269SS.
2. If such a Chit fund is specifically notified by the government for exemption of sec 269SS then it shall be excluded. Otherwise, all chit funds will be covered u/s 269SS of the act.
Please correct me if the above solution has an alternative view.