(1) The prescribed authority may refuse registration of a hotel under this Act on the following gerunds namely.
(a) If the hotel keeper has been convicted of any offence under Chapter XIV and XVI or the Indian Penal Code, 1860 or under any of the provisions of this Act or of any offence punishable under any law providing for the prevention of hoarding, smuggling or profiteering or adulteration of food, violation of foreign exchange regulation or foreign contribution regulations or the possession or sale of any narcotic drugs or psycho tropic substances or corruption and two years have not elapsed since the termination of the sentence imposed upon him.
(b) If the hotel-keeper has been declared an insolvent by a court of competent jurisdiction and has not been discharged;
(c) If the name if the hotel-keeper has been removed for the register under clause (b) of section 12 and six months have not elapsed since the date of such removal;
(d) If the hotel-keeper does not hold a license or certificate required to be hold by him under any law for the time being in force,
(e) If, in the opinion of the prescribed authority, there is sufficient ground to be recorded in writing, for refusing registration.
(2) No application for registration shall be refused unless the person applying for registration has been afforded a reasonable opportunity of being heard.