Section 4(3) in The M.P. Anusuchit Jan Jati Sahukar Viniyam, 1972
(3)The licensing authority may, by order in writing, refuse to grant a licence if such authority is satisfied after making due enquiry,-(a)that the applicant has not complied with the provisions of these Regulations or the rules made thereunder in respect of an application for the grant of a licence;(b)that the applicant has knowingly acted in contravention of any requirement of these Regulations;(c)that the applicant 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 any offence under Chapter XVII or Chapter XVIII of the Indian Penal Code 1860 (Central Act XLV of 1860).Explanation. - For the purpose of this clause, the expression "due enquiry" shall include enquiry relating to previous background, rates of interest charged, manner of recoveries etc. by the applicant in the past :Provided that before passing an order refusing to grant a licence on any of the grounds specified above other than the grounds specified in sub-clause (ii) of clause (c), the applicant shall be given a reasonable opportunity of being heard.
