I think their intention is not there to repay. You need to send them legal notice and approach court at the earliest

You can make a written complaint against the chit funds to the "Registrar of the Chit Funds". Under whose authority the chit fund has been registered. Kindly check the agreement of the Chit fund when you have entered.

You ask to Insepct the books of account of Chit Funds to Registrar. THE CHIT FUNDS ACT, 1982, under section 46.

46. Inspection of chit books and records by Registrar.—

1. Without prejudice to the provisions of sections 209 and 209A of the Companies Act, 1956 (1 of 1956), the Registrar or an officer authorised by the State Government in this behalf may inspect chit books and all the records of a chit during working hours on any working day at the premises of the foreman with or without giving notice and it shall be the duty of every foreman to produce to the Registrar or the officer so authorised, all such books and records as are in his custody or power and to furnish him with any statement or information relating to the chits as he may require from the foreman within such time as he may specify.
2. The Registrar or an officer authorised by the State Government in this behalf may, after giving seven days’ notice in writing to the foreman, direct him to produce before him for inspection such chit books and records as he may require at the time and place mentioned in the notice.
3. If on an inspection made under sub-section (1) or sub-section (2), any defects are found, the Registrar may bring such defects to the notice of the foreman and may also make an order directing the foreman to take such action as may be specified in the order to remedy the defects within the time specified therein.
4. Every foreman shall be bound to comply with the directions contained in an order made under sub-section (3).

Please approach a lawyer and get a legal notice issued against the chit fund Company for recovery of your dues as per agreed upon in between you and company. 

No doubt they have failed to pay you the discounted amount as per the Chit Fund Law. So you have to make the complaint to sub-Registrar or Registrar  as per Section 2 (o).

(o) “Registrar” means the Registrar of Chits appointed under section 61, and includes an Additional, a Joint, Deputy or an Assistant Registrar appointed under that section;

If you want any Complaint or application in written form against the Cit Fund company I can send Legal Notice on your behalf, do let me know. 

Issue legal notice to chit fund to pay balance amount 

inform the chit fund company that you are willing to pay balance installments on receipt of balance amount payable to you 

Act as mentioned herein above 

in case any suit is filed take the defence that balance amount not received by you hence you did not pay installments 

If you have already written to them that to adjust your installments and they have not done so far then file immediately a case before the consumer forum for the relief.

You need to approach court as stated. 

File FIR of cheating and criminal breach of trust agasint company for recovery of due amount.

- As per law, Chit funds are not financial companies, they are not regulated by the rules or guidelines of the RBI.

- Further, Chit Fund Act, was passed to regulate and monitor the activities of chit fund companies. 

- Further , under Section 61 of this Act. Powers of adjudication is vest in the Registrar and the state governments Appellate authority.

- Further, the Prize chits and money circulation schemes are illegal and are banned under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. and the powers of investigation under this Act are vested with the concerned state police authorities.

- Since, the said chit fund company has failed to pay the remaining amount of the bidder amount, and further threaten to implicate the surety is against the law. 

- You should issue a legal notice , and thereby mention that the company has violated the norms after not paying the remaining amount , and thereby ask to withdraw the notice served upon the sureties. 

- Further in no response , then lodge a complaint before the registrar , and police for cheating in the name of chit fund company. 

You can complain the said issue with Registrar of Chits of your jusridiction where the chit fund company is registered and raise your legal objections with Registrar by giving a protest petition under valid receipt and take acknowledgement...I think Registrar will do the Needful...

If your sureties have been issued legal demand notice then they may have to issue a suitable reply notice denying the allegations.

In the meantime you should issue a legal demand notice to the chit fund company demanding the balance of the chit bid auction amount.

By remaining silent and not paying the monthly chit mount will become an offence on you.

the chit fund company may initiate recovery action agaisnt you for this.

They may even recover the amount from the sureties, who in turn may recover the said amount from you.

It is your fault for not having demanded the money after the auction was over and you were declared highest bidder.

You can issue a legal demand notice  demanding the balance of the bid amount failing which you can file a money recovery suit with the support of documentary evidences in yor possession.

You can issue legal notice to the Chit Fund through your advocate by claiming your amount which you invested and and you are liable to get the interest as per the plan. Mention the details which the chit fund is binding to pay you as per the policy and terms and conditions which they have explained to you.

consult local lawyer and file a recovery of money suit . 

1. You should send reply to chit fund company that company were at default due to which you stopped the payment of Installements.

2. That if they complete the payment of bid won by you then you will clear all the instalments on thay very day.

3. Till then ask them that company should not send any notice or intimation to guarantor.