Section 4(4) in The Maharashtra Chit Funds Act, 1974
(4)The Registrar may by an order in writing for reasons to be recorded therein refuse to register the chit and its by-laws which do not comply with the provisions of this Act and the rules, or on any of the following grounds, namely :-(i)that the security offered by the Foreman under section 13 is insufficient;(ii)that the Foreman has been convicted of any offence under this Act, or(iii)that the Foreman has defaulted in the payment of fees, filing of statements or records, required to be paid or filed under this Act or has violated any of the provisions of this Act or the rules made thereunder :Provided that, before refusing to register a chit, the Foreman shall be given an opportunity of being heard.
