Section 12

The Registrar may, without affecting the exercise of any other power under this Act, forfeit the whole or such part of any security deposit placed with the Accountant‑General under section 5(6)(c), 6(4)(c) or 11(3)(c) as the Registrar thinks fit if the Registrar is satisfied that there exists a ground for the revocation or suspension of the licence under section 10(1).

The Registrar must, before forfeiting the whole or part of the security deposit under subsection (1), give the licensee notice in writing of the Registrar’s intention to do so specifying a date, at least 14 days after the date of the notice, upon which the forfeiture will be made unless the licensee shows cause to the Registrar as to why the whole or part of the security deposit should not be forfeited.

Where, after the licensee has shown cause under subsection (2), the Registrar decides to forfeit the security deposit or any part of it, the Registrar must notify the licensee of the Registrar’s decision in writing and specify a date, at least 14 days after the date of the notice, upon which the security deposit or that part of it will be forfeited.

The licensee may, within 14 days after the date of the notice under subsection (3), appeal in writing against the forfeiture of the licensee’s security deposit or any part of it to the Minister whose decision is final.

If the licensee appeals to the Minister under subsection (4), the Registrar must not forfeit the security deposit or any part of it unless the Registrar’s decision to do so is confirmed by the Minister, or the appeal is for any reason dismissed by the Minister or is withdrawn.

Where the licensee lawfully continues to carry on the business of moneylending under this Act after the licensee’s security deposit or any part of it has been forfeited, the licensee must restore the security deposit to the full amount as required under this Act by placing with the Accountant‑General an appropriate amount in the form and within the time required by the Registrar.[11