(1) The Registering Authority may, at any time, either suo moto or upon receipt of complaints by SHGs or its members or by members of the public cancel the registration of an MFI after assigning sufficient reasons for such cancellation:
Provided that no order of cancellation of the Registration shall be passed without issuing notice to the MFI intimating the facts upon which the primafacie decision to cancel the registration has been taken and the MFI shall be afforded a reasonable opportunity to show cause against such notice.
Explanation. - For the purposes of sub-section (1), conviction of a MFI for an offence of violation of any of the provisions of this Act shall be sufficient cause for suspension or cancellation of its registration.
(2) Pending enquiry under sub-section (1), the Registering Authority may, for sufficient reasons to be recorded, suspend the registration, of an MFI.
6.Member of SHG not to be member of more than one SHG - No member of an SHG shall be a member of more than one SHG, provided that where a member has, at the commencement of this Act, become a member of more than one SHG, she shall have the option to retain the membership of one SHG and to terminate her membership in other SHGs and for that purpose, she shall issue a notice to such SHGs about her option to terminate her membership, settle and pay the amount payable to the MFIs which had lent monies to such SHGs, within a period of three months from the date of commencement of this Act.