(1) If, at any time, after any clinical establishment has been registered, the authority is satisfied that,–
(a) the conditions of the registration are not being complied with; or
(b) such clinical establishment has engaged the services of any doctor or paramedical staff appointed by the Government or Public Sector Undertaking except in emergency cases; or
(c) the person entrusted with the management of the clinical establishment has been imposed penalty thrice as provided in section 38 of this Act; it may issue a notice to the clinical establishment to show cause within thirty days time as to why it’s registration under this Act should not be cancelled for the reasons to be mentioned in the notice.
(2) If, after giving a reasonable opportunity to the clinical establishment, the authority is satisfied that there has been a breach of any of the provisions of Act or the rules made thereunder, it may, by an order, without prejudice to any other action that it may take against such clinical establishment, cancel its registration.
(3) Every order made under sub-section (2) shall take effect—
(a) where no appeal has been preferred against such order, immediately on the expiry of the period prescribed for such appeal; and
(b) where such appeal has been preferred and it has been dismissed, from the date of the order of such dismissal:
Provided that the authority, after cancellation of registration, for reasons to be recorded in writing, may restrain immediately the clinical establishment from carrying on if there is imminent danger to the health and safety of patients.