Refusal of issue of licence

Refusal of issue of licence.—

1. (1) The grant of a licence shall not be refused except on any of the following grounds:-
   • (a) that the applicant, or any person responsible or proposed to be responsible for the management of his business as a money-lender is disqualified from holding a licence;
   • (b) that the applicant has not complied with the provisions of this Act or the rules in respect of an application for the grant of licence;
   • (c) that the applicant has made wilful default complying with or knowingly acted in contravention of any requirement of this Act;
   • (d) that satisfactory evidence has been produced that the applicant or any person responsible or proposed to be responsible for the management of his business of money-lending has—
     • (i) knowingly participated in or connived at any fraud or dishonesty in the conduct of or in connection with the business of money-lending; or
     • (ii) been found guilty of an offence under Chapter XVII or sections 465, 477 or 477-A of Chapter XVIII of the Indian Penal Code, 1860 (Central Act 45 of 1860);
     • (iii) In the opinion of the Registrar, used money from the source which is questionable and doubtful.
2. (2) The Registrar shall, before refusing a licence under sub-section (1), give to the applicant a reasonable opportunity of producing evidence, if any, in support of the application and of showing cause why the licence should not be refused; and record the evidence adduced before him and his reasons for such refusal.
3. (3) An appeal shall lie from an order of the Registrar refusing a licence under sub-section
4. (1) to the Government, whose decision thereon shall be final.