(1)The licensing authority may, at any time, by order in writing, forfeit to the Government the whole or any portion of the security deposit paid or deemed to have been paid under sub-section (2) of section 4A, if the licensee,—(a)carries on the business of money lending in contravention of any of the provisions of this Act or the rules made thereunder or the conditions of licence; or(b)is convicted of an offence under sub-section (3) of section 9, section 15, section 16 or section 16A or section 18; or(c)maintains false accounts.(2)Before forfeiting to the Government the whole or any portion of the security deposit under sub-section (1), the licensing authority shall give the licensee a notice in writing stating the grounds for which it is proposed to take action and requiring him to show cause against it within such time as may be specified in the notice.(3)Every order of the licensing authority under this section shall be communicated to the licensee in such manner as may be prescribed.(4)Every person aggrieved by an order under sub-section (1) may, within a period of one month from the date on which the order was communicated to him, prefer an appeal to the prescribed authority whose decision shall be final.(5)The licensing authority may, out of the amount forfeited, direct payment of such amount and at such rates as may be prescribed to the borrowers affected by the acts of the licensee.
