(1) 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 willful default in complying with or knowingly acted in contravention of any requirement of this Act ;
(d) that satisfactory evidence has been produced before the District Registrar that the applicant or any person responsible or proposed to be responsible for the management of the 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 sections 465, 477 or 477-A of Chapter XVIII of the Indian Penal Code (45 of 1860).
(2) The District 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.
(3) An appeal shall lie from the decision of the District Registrar refusing a licence under sub-section (1), to the Divisional Registrar, whose decision thereon shall be final.
(4) An appeal against the decision of the District Registrar under sub-section (1) may be filed within three months from the date of the decision:
Provided that, the Divisional Registrar may, for reasons to be recorded, entertain the appeal after the expiry of a period of three months from the date of decision of the District Registrar under sub-section (1), if he is satisfied that the appellant was prevented, for the reasons beyond his control, from filing the appeal within a period of three months.