Provided that no application for registration shall be refused unless the person applying for registration has been allowed an opportunity of being heard.

Removal of the name of a hotel from the register The prescribed authority may, by an order in writing, remove the name of a hotel from the register and cancel its certificate of registration on any of the following grounds, namely:—

1. (a) if the hotel-keeper ceases to operate the hotel in the tourist area for which he is registered;
2. (b) if the hotel-keeper is convicted of an offence under Chapters XIV and XVI of the Indian Penal Code, 1860 (45 of 1860) or under any of the provisions of this Act or of an offence punishable under any law providing for prevention of hoarding, smuggling or profiteering or adulteration of food or drugs or corruption; and two years have not elapsed since the termination of the sentence imposed upon him;
3. (c) if the hotel-keeper is declared an insolvent by a court of competent jurisdiction and has not been discharged;
4. (d) if the hotel-keeper fails to comly with any of the provisions of this Act or rules framed thereunder;
5. (e) if the hotel-keeper fails to remove a lodger or wilfully keeps the lodger in a hotel, who becomes a nuisance for the inmates in an adjoining building;
6. (f) if any complaint of malpractice is received and proved against a hotel keeper;
7. (g) if the hotel is black-listed under section 14; and
8. (h) if the hotel-keeper makes structural changes in the hotel without the approval of the Development Authority constituted under the Himachal Pradesh Town and Country Planning Act, 1977 (12 of 1977) of any other local authority concerned.