law: Arms Act, 1959
  14. Refusal of licenses-
  1. Notwithstanding anything in section 13,
  
  licensing authority shall refuse to grant-
  (a) a license under
  
  section 3, section 4, or section 5 where such license is required in respect of
  
  any prohibited arms or prohibited ammunition:
  (b) A license in any
  
  other case under Chapter II,-
  ( i )
  
  where such license is required by a person whom then licensing authority has
  
  reason to believe-
  (1) to be prohibited
  
  by this Act or by any other law for the time being in force from acquiring,
  
  having in his possession or carrying any arms or ammunition, or
  (2) to be
  
  of unsound mind, or
  (3) to be for any
  
  reason unfit for a license under this Act, or
  (ii) where the
  
  licensing authority deems it necessary for the security of the public peace or
  
  for public safety to refuse to grant such license.
  2. The licensing authority shall not refuse to
  
  grant any license to any person merely on the ground that such person does
  
  not own or possess sufficient property.
  3. Where the licensing authority refuses
  
  to grant a license to any person it shall record in writing the reasons for
  
  such refusal and furnish to that person on demand a brief statement of the same
  
  unless in any case the licensing authority is of the opinion that it will not
  
  be in the public interest to furnish such statement.