(1) The prescribed authority may, on a complaint of malpractice having been proved or for any other offence committed under this Act, for reasons to be recorded, black list a hotel, after taking into consideration the nature of malpractice or the gravity of offence, for such period as the prescribed authority, deems fit.
(2) The particulars of a black-listed hotel shall be exhibited at conspicuous places in all tourist areas and all the travel agents, dealers and hotel keepers, foreign missions in India and Indian missions abroad shall be given a copy thereof and they may be requested to affix the same at a conspicuous place in the place of business or as the case may be, the notice board of their offices.
(3) The action taken under sub-section (1) shall not protect such hotel-keeper from being prosecuted under the provisions of this Act.
(4) If the prescribed authority is satisfied that there are sufficient grounds for removal of a hotel from the black-list it may, after recording the reasons, order its removal from such list and issue a fresh certificate of registration on payment of prescribed fee and notify the same for the information of all concerned.