If the Central Government, on a complaint of the Registrar of Copyrights or of any owner of rights, has reason to believe that a copyright society is being managed in a manner detrimental to the interests of the owners of rights concerned, it may, after making an inquiry in the following manner, cancel or suspend the registration of the copyright society made under these rules, namely :—
(i) The Central Government shall provide a copy of the complaint to the society and require the society to submit within such time as may be specified by the Central Government a written statement of its defence and to state whether it desires to be heard.
(ii) If, after considering the written statement furnished by the society, the Central Government is satisfied that a prima facie case is established, it shall order an inquiry into the allegations and appoint an inquiry officer not below the rank of a Deputy Secretary to the Government of India for holding the inquiry.
(iii) On being appointed as such, the inquiry officer shall conduct the inquiry having regard to the principles of natural justice.
(iv) The inquiry officer may, if he considers it necessary, engage a chartered accountant or an audit officer in the office of the Comptroller and Auditor-General of India to assist him in the inquiry. The concerned copyright society shall render all assistance and shall make available all such documents as may be called for by the inquiry officer to enable him to complete the inquiry within a period of three months or such further time as may be allowed by the Central Government.
(v) If, according to the findings of the inquiry officer, the complaints against the copyright society are found to be true or if the society fails to cooperate with the inquiry officer, the Central Government shall cancel the registration of the copyright society.