If the prescribed authority is satisfied either on a reference made to it in this behalf or otherwise, that––
(a) the holder of a permit or Certificate of Registration granted, under sub-section (3) of section 112, or sub-section (3) of section 114, has, without reasonable cause, failed to comply with the conditions subject to which the permit or Certificate of Registration has been granted or has contravened any of the provisions of the Act or the rules made thereunder ; or
(b) a situation has arisen which warrants limiting the use or extraction of ground water,
it may, without prejudice to any other penalty to which the holder of the permit or of the Certificate of Registration may be liable under the Act, after giving such holder an opportunity to show cause, cancel , alter or modify the permit or Certificate of Registration, as the case may be.