State Act

THE KARNATAKA MONEY-LENDERS ACT, 1961

8. Refusal of issue of licence.— (1) The grant of 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 by an order under section 16 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 wilful default in complying with or knowingly acted in contravention of any requirements of this Act; (d) that satisfactory evidence has been produced that the applicant or any person responsible or proposed to be responsible for the management of his 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 Chapter XVIII of the Indian Penal Code. (2) The Registrar shall, before refusing a licence under sub-section (1), record the evidence adduced before him and his reasons for such refusal. (3) An appeal shall lie from an order of the Registrar refusing a licence under sub-section (1), to the Registrar General whose decision shall be final.