5. Refusal to previous sanction for the commencement or conduct of chit [Section 4].
(1)Where previous sanction for the commencement or conduct of a chit is refused, the reasons for such refusal shall be recorded in writing and a copy thereof shall be communicated to the foreman.(2)Before refusing such sanction, the State Government or the officer empowered in this behalf, shall issue a notice, by registered post, to the foreman, calling upon him to show cause within a period of fourteen days of issue of such notice, as to why previous sanction be not refused.(3)Where, the ground for the proposed refusal of such previous sanction is default in the payment of fee or in the filing of any statement or record required to be paid or filed under the Act, or these rules, the State Government or the officer empowered in this behalf, may, after hearing the foreman and being satisfied that the default has occurred due to reasons beyond the control of the foreman or due to other bona-fide reasons, condone the said default provided that the foreman has paid the fee or filed the necessary documents on or before the date of such hearing.
