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11.—(1) This regulation applies where, having approved an application for payment it appears to the Department that—
(a)the applicant was not eligible to make the application;
(b)the applicant knowingly or recklessly provided false or misleading information or any document which is false or misleading in a material particular in relation to the application;
(c)the applicant without reasonable cause obstructs an inspection under regulation 9.
(2) Subject to paragraph (3), the Department may—
(a)revoke the approval of the application; and
(b)where payment has already been made, recover on demand from the applicant an amount equal to the whole or any part of the payment—
(i)as a civil debt; or
(ii)by way of offsetting against any sum otherwise payable to the applicant by the Department.
(3) Before exercising the power under paragraph (2), the Department must by a withdrawal or recovery notice, as is appropriate—
(a)give the applicant a written explanation of the reasons for the proposed action;
(b)afford the applicant the opportunity to make written representations with a reasonable time specified by the Department; and
(c)consider representations made by or on behalf of the applicant within a reasonable time period.
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