4. Communication of the refusal to sanction commencement or conduct of a chit.
(a)Where sanction for the commencement or conduct of a chit is refused. the reason for such refusal shall be recorded in writing a copy thereof shall be communicated to the applicant.(b)Before refusal of such sanction, the State Government or the officer empowered in this behalf shall issue a notice to the foreman calling upon him to show cause within a reasonable period to be stipulated in such notice as why sanction should not be refused.(c)Where the grounds for the proposed refusal of such sanction is default in payment of fees or filing any statement or record required to be paid or field under the Act, the State Government or the officer empowered in this behalf is satisfied on hearing the applicant the the default has occurred due to the reasons beyond the control of the foreman or due to other bonafied reasons provided the foreman has paid the fees or filed the necessary documents on or before the date of such hearing.
