Power to cancel or suspend registration

Power to cancel or suspend registration.—

1. (1) The Registering Authority may, at any time, either suo motu or upon receipt of a complaint from a borrower or any other affected person, issue a notice to the lender to show cause as to why their compliance certification or registration under this Act should not be cancelled, if it is of the opinion that the lender has contravened any provision of this Act or rules made thereunder.
2. (2) Upon consideration of the reply, if any, and after providing the lender an opportunity of being heard, the Registering Authority may cancel or suspend such registration, by recording reasons in writing.
3. (3) Pending the inquiry under sub-section (1), the Registering Authority may suspend the compliance certification or registration, for reasons to be recorded in writing.
4. (4) A lender whose registration or certification is suspended or cancelled shall not disburse any new loans or recover existing ones during the period of suspension or after cancellation.