(1) The prescribed authority may, by an order in writing, remove the name of a hotel from the register and cancel its certificate of registration on any of the following grounds, namely:—
(a) if the hotel-keeper ceases to operate the hotel in the tourist area for which it is registered;
(b) if the hotel-keeper is convicted of any offence under Chapters XIV and XVI of the Indian Penal Code, 1860 or under any of the provisions of this Act or of any offence punishable under any law providing for the prevention of hoarding, smuggling or profiteering or adulteration of food, violation of foreign exchange regulations or foreign contribution regulations or the possession or sale of any narcotic drugs or psychotropic substances or corruption.
(c) if the hotel-keeper is declared an insolvent by a Court of competent jurisdiction and has not been discharged;
(d) if any complaint of malpractice is received and proved against a hotelkeeper;
(e) if the hotel is black-listed under section 13.
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(2) Any hotel, the name of which is removed from the register under sub-section
(1), shall forthwith cease to operate.