(1) If the [Government of the Union territory of Jammu and Kashmir] considers that it its expedient that any registered person should be––
(a) restricted to any specified area, or
(b) settled in any place of residence, the [Government of the Union territory of Jammu and Kashmir] may, by notification in the [Government Gazette], declare that such person shall be restricted to the area specified in the notification or shall be settled in the place of residence so specified, as the case may be :
Provided that no such declaration shall have effect for a period in excess of three years.
(2) Before making any such declaration, the [Government of the Union territory of Jammu and Kashmir] shall consider the following matters in an inquiry held by such authority and in such manner as may be prescribed :
(i) the nature and the circumstances of the offences in which the registered person is believed to have been concerned ;
(ii) whether the registered person follows any lawful occupation, and whether such occupation is a real occupation or merely a pretence for the purpose of facilitating the commission of crimes ;
(iii) the suitability of the restricted area, or of the place of residence, as the case may be, which it is proposed to specify in the notification ;
(iv) the manner in which it is proposed that the person to be restricted or settled shall earn his livelihood within the restricted area or in the place of residence, and the adequacy of the arrangements which are proposed therefor.