Withholding and recovery of payment11.
(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.