Suspension and cancellation of licence

Suspension and cancellation of licence.--(1) The Controller may, if he has reason to believe that the holder of any licence issued under this Act has made any statement in, or in relation to, any application for the issue or renewal of the licence which is incorrect or false in any material particular or has contravened any provision of the Central Act or any rule made thereunder or of this Act or any rule made thereunder, suspend such licence, pending the completion of any enquiry or trial against the holder of such licence: Provided that no such licence shall be suspended unless the holder thereof has been given a reasonable opportunity of showing cause against the proposed action.

1. (2) The Controller may, if he is satisfied after making such inquiry as he may think fit that the holder of a licence has made a false or incorrect statement referred to in sub-section
2. (1) or has contravened any law referred to in that sub-section, cancel such licence: Provided that no such licence shall be cancelled unless its holder thereof has been given a reasonable opportunity of showing cause against the proposed action.
3. (3) Every person whose licence has been suspended shall, immediately after such suspension, stop functioning as such licensee and shall not resume business as such licensee until the order of such suspension has been vacated.
4. (4) Every licensee whose licence has been cancelled shall, immediately after such cancellation, surrender such licence to the authority by whom it was issued.