- The grant of a licence shall not be refused except on any of the following grounds.-(a)that the applicant, or any person responsible or proposed to be responsible for the management of his business as a money-lender is disqualified from holding a licence;(b)that the applicant has not complied with the provisions of this Act or the rules in respect of an application for the grant of a licence;(c)that the applicant has made wilful default in complying with or knowingly acted in contravention of any requirement of this Act;(d)that satisfactory evidence has been produced that the applicant or any person responsible or proposed to be responsible for the management of his business of money-lending has-(i)knowingly participated in or connived at any fraud or dishonesty in the conduct of or in connection with the business of money-lending, or(ii)been found guilty of an offence under Chapter XVII or section 465, 477 or 477-A of Chapter XVIII of the Indian Penal Code (X of 1860).(2)[ The Registrar shall, before refusing a licence under sub-section (1) give to the applicant a reasonable opportunity of producing evidence, if any, in support of the application and of showing cause why the licence should not be refused; and record the evidence adduced before him and his reasons for such refusal.] [Sub-section (2) was substituted for the original by Bombay 50 of 1959, section 4 (1).](3)An appeal shall lie from an order of the Registrar refusing a licence under subsection (1) to the Registrar General, whose decision shall be final.
