Notwith standing anything contained in this Act or the Rules made hereunder, the Government or the Director of Cottage Industries, if the loan is sanctioned by an authority other than the Government, may for’ reasons S ' 3 to be recorded in writing, terminate the agreement for loan and direct the borrower to repay all the amounts due thereunder within such time- as may be fixed on any of the following grounds:—
(i) that any portion of the loan given has been misapplied, or
(zz) that there has been a breach by the borrower of the provisions of this Act or of any rule made thereunder or of any condition of the grant, or
(iti) that the application on which the loan has been granted contained or was accompanied by, any material statement by the borrower which he knew to be false or any intentional concealment by him of any material fact, which in the opinion of the Government or the Director of Cottage Industries, as the case may be, it was his duty to disclose or that any such false statement or concealment was intentionally made in any enquiry made under this Act or in reply to any requisition for information under this Act, or (tt>) That the Small or Cottage Industry in question is being managed in such a manner as to endanger the repayment of the loan granted thereto and repayable under this Act, and in default of payment within the specified date proceed to recover from the borrower as an arrear of land revenue the whole amount of the outstanding loan, together with such interest as may be due thereon.