(1) The licensing authority may, at any time, during the term of any licence, cancel it by an order in writing:-
(a) if the licensee carries on the business in contravention of any of the provisions of this Act or the rules made thereunder or of the conditions of the licence, or
(b) if any reason for which the licensing authority could have refused to grant the licence to the money-lender under subsection (3) of section 4, is brought to the notice of that authority after the grant of the licence, or
(c) if the licensee is convicted for an offence *[under section 1OA or section 11] or Section 13, or
(d) if the licensee maintains false accounts or is found to molest or abet the molestation of any debtor for the recovery of any debt.
(2) Before cancelling a licence under sub-section (1), the licensing authority shall give the licensee a notice in writing stating the grounds on which it is proposed to take action and requiring him to show cause against it within such time as may be specified in the notice.
________________________________________________________________________ * Inserted vide Act No: 7 of 1983 w.e.f 11-12-1983 and published in Extraordinary Gazette Part-Il No. 30 dated 31-12-1983.
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(3) Any person aggrieved by an order of the licensing authority cancelling a licence may, within one month of the date of communication of such order to him, appeal to the prescribed authority.
Publication of order of cancellation
15. Every order of cancellation of a licence under this Act shall be notified in the Official Gazette and also on the notice-board of the office of the licensing authority.
No compensation for cancellation of licence
16. A person whose licence is cancelled under section 14 *[or is deemed to have been cancelled under sub-section (2) of section 18A] shall not be entitled to any compensation in respect of such cancellation or to the refund of any fee paid in respect of such licence.
Penalty for carrying on business without licence
17. Whoever carries on the business of money-lending without a licence or otherwise than in conformity with the terms and conditions of a licence shall be punished with fine which may extend to one thousand rupees:
Provided that a person shall not be deemed to carry on the business of moneylending without a licence, if he had ceased to carry on the business of moneylending but was taking steps to recover any loan advanced by him.
Penalties