(1)Where in any suit brought in respect of a loan by a registered money-lender or in respect of any security taken for a loan by a registered money-lender, the court is of the opinion that the registered money-lender has been guilty of fraud or of any contravention of this Act or is otherwise unfit to carry on the business of money-lending, the Court shall make a report to the Collector and the Collector may on receipt of such report and after due, and proper inquiry, cancel for such period not exceeding five years, as he thinks fit the registration certificate granted to the money lender and forward a copy of his order cancelling such certificate within the prescribed period to the Anchal Adhikari who granted the certificate.
