Section 5:
Penalty for other offences in connection with prize chits or money circulation schemes.
Whoever, with a view to the promotion or conduct of any prize chit or money circulation scheme in
contravention of the provisions of this Act or in connection with any chit or scheme promoted or
conducted as aforesaid,--
(a) prints or publishes any ticket, coupon or other document for use in the prize chit or money
circulation scheme; or
(b) sells or distributes or offers or advertises for sale or distribution, or has in his possession for
the purpose of sale or distribution any ticket, coupon or other document for use in the prize chit or
money circulation scheme; or
(c) prints, publishes or distributes, or has in his possession for the purpose of publication or
distribution--
(i) any advertisement of the prize chit or money circulation scheme; or
(ii) any list, whether complete or not, of members in the prize chit or money circulation
scheme; or
(iii) any such matter descriptive of, or otherwise relating to the prize chit or money
circulation scheme, as is calculated to act as an inducement to persons to participate in that prize
chit or money circulation scheme or any other prize chit or money circulation scheme; or
(d) brings, or invites any person to send, for the purpose of sale or distribution, any ticket, coupon
or other document for use in a prize chit or money circulation scheme or any advertisement of such
prize chit or money circulation scheme; or
(e) uses any premises, or causes or knowingly permits any premises to be used, for purposes
connected with the promotion or conduct of the prize chit or money circulation scheme; or
(f) causes or procures or attempts to procure any person to do any of the above-mentioned acts,
shall be punishable with imprisonment for a term which may extend to two years, or with fine which may
extend to three thousand rupees, or with both:
Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the
judgment of the court, the imprisonment shall not be less than one year and the fine shall not be less than
one thousand rupees.