RTC Act 38Chapter V · Miscellaneous
Section 38 · Power to supersede a Corporation
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(1) If the State Government is of opinion that a
Corporation established by that Government is unable to perform, or has persistently made default in the
performance of the duties imposed on it by or under the provisions of this Act or has exceeded or abused
its powers, the State Government may, 1*** by notification in the Official Gazette, supersede the
Corporation for such period as may be specified in the notification:
Provided that before issuing a notification under this sub-section the State Government shall give a reasonable time to the Corporation to show cause why it should not be superseded and shall consider the explanation and objections, if any, of the Corporation.
(2) Upon the publication of a notification under sub-section (1) superseding a Corporation--
(a) all the 2[Directors] of the Corporation shall, as from the date of supersession, vacate their offices as such a 2[Directors];
(b) all the powers and duties which may, by or under the provisions of this Act or of any other law, be exercised or performed by or on behalf of the Corporation shall, during the period of supersession, be exercised and performed by such person or persons as the State Government may direct;
(c) all property vested in the Corporation shall, during the period of supersession, vest in the State Government.
(3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the State Government may--
(a) extend the period of supersession for such further term as it may consider necessary; or
(b) reconstitute the Corporation in the manner provided in section 5.
Provided that before issuing a notification under this sub-section the State Government shall give a reasonable time to the Corporation to show cause why it should not be superseded and shall consider the explanation and objections, if any, of the Corporation.
(2) Upon the publication of a notification under sub-section (1) superseding a Corporation--
(a) all the 2[Directors] of the Corporation shall, as from the date of supersession, vacate their offices as such a 2[Directors];
(b) all the powers and duties which may, by or under the provisions of this Act or of any other law, be exercised or performed by or on behalf of the Corporation shall, during the period of supersession, be exercised and performed by such person or persons as the State Government may direct;
(c) all property vested in the Corporation shall, during the period of supersession, vest in the State Government.
(3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the State Government may--
(a) extend the period of supersession for such further term as it may consider necessary; or
(b) reconstitute the Corporation in the manner provided in section 5.
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