(1) Where a case is registered by a Police Officer on the allegation that the holder of the permit has by reckless or dangerous driving caused the death of or grievous hurt to, one or more persons, the permit held by such person shall become and shall remain, suspended for a period of 6 months from the date on which the case is registered or if such person is discharged or acquitted before the expiry of said period, until such discharge or acquittal as the case may be.
(2) Where by virtue of sub-clause (1) the permit held by a person becomes suspended, the police officer shall bring the fact to the notice of the Competent Authority who will take possession of the permit and make an endorsement to this effect.
(3) If the person is convicted in any offence within a period of six months or thereafter, the Competent Authority shall cancel the permit.