(1)Every application for the registration of a chit to be made by the foreman to the Registrar shall be in Form-II.(2)Before refusing such sanction the State Government shall issue a notice to the foreman calling upon him to show cause within a reasonable period to be stipulated in such notice, why sanction be not refused.(3)Where the ground for the proposed refusal of such sanction is default in payment of fees or filling of any statement or record required to be paid or filed under the Act, the State Government shall condone the said default, the State Government is satisfied on hearing the foreman that the default has occurred due to reasons beyond the control of the foreman or due to other bona fide reasons provided the foreman has paid the fees or filed the necessary documents on or before the data of such hearing.
