Cancellation of registration.

1. (1) Where the institutional creditor informs the registering authority about the termination of its relationship with the accredited loan provider,

the registering authority shall cancel the registration of the accredited loan provider.

Provided that if within a period of thirty days from the date of cancellation of the registration, such accredited loan provider enters into an agreement with another institutional creditor and his application is countersigned by the new institutional creditor, the registering authority shall restore the registration of such accredited loan provider.

1. (2) The registering authority may, at anytime, for sufficient cause, suspend or cancel a registration granted under section 13. Provided that no order suspending or cancelling the registration shall be passed without giving the accredited loan provider an opportunity to show cause against the proposed action. Explanation:— For the purposes of sub-section (2), prosecution or conviction of an accredited loan provider for violating any of the provisions of this Act shall be sufficient cause for suspension or cancellation of the registration.