Section 29(6) in The National Housing Bank Act, 1987
(6)The National Housing Bank may cancel a certificate of registration granted to a housing finance institution under this section if such institution-(i)cases to carry on the business of a housing finance institution in India; or(ii)has failed to comply with any condition subject to which the certificate of registration had been issued to it; or(iii)at any time fails to fulfil any of the conditions referred to in clauses (a) to (g) of sub-section (4); or(iv)fails-(a)to comply with any direction issued by the National Housing Bank under the provisions of this Chapter; or(b)to maintain accounts in accordance with the requirement of any law or any direction or order issued by the National Housing Bank under the provisions of this Chapter; or(c)to submit or offer for inspection its books of account and other relevant documents when so demanded by an inspecting authority of the National Housing Bank; or(v)has been prohibited from accepting deposit by an order made by the National Housing Bank under the provisions of this Chapter and such order has been in force for a period of not less than three months:Provided that before cancelling a certificate of registration on the ground that the housing finance institution has failed to comply with the provisions of clause (ii) or has failed to fulfil any of the conditions referred to in clauses (a) to (g) of sub-section (4), the National Housing Bank, unless it is of the opinion that the delay in cancelling the certificate of registration shall be prejudicial to the public interest or the interest of the depositors or the housing finance institution, shall give an opportunity to such institution on such terms as the National Housing Bank may specify for taking necessary steps to comply with such provision or fulfilment of such condition:Provided further that before making any order of cancellation of certificate of registration, such institution shall be given a reasonable opportunity of being heard.
