Amendment status not verified — confirm the current text below against the official source.
Forfeiture of security.— (1) The Registrar may, at any time, by order in writing, forfeit to the Government the whole or any portion of the security furnished under sub- section (2) of section 7A, if the licensee,— (a) carries on the business of money lending in contravention of any provisions of this Act or the rules made thereunder or the conditions of the licence; or (b) is convicted of an offence under section 27 or section 38 or section 39 or section 40; or (c) maintains false accounts. (2) Before forfeiting to the Government the whole or any portion of the security deposit made under sub-section (1), the Registrar 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. (3) Every order of the Registrar under this section shall be communicated to the licensee in such manner as may be prescribed. (4) Any person aggrieved by an order under sub-section (1), may within a period of one month from the date on which the order was communicated to him, prefer an appeal to the Registrar General whose decision shall be final. (5) The Registrar may, out of the amount forfeited, direct payment of such amounts and at such rates as may be prescribed to the borrowers affected by the acts of the licensee.]1