(1) If, on receipt of a report from the Deputy Commissioner or otherwise, the Administrator is of opinion that—
(a) any District Council is not competent to perform, or persistently makes default in the performance of, the duties imposed on it by or under this Act or any other law; or
(b) any District Council exceeds or abuses its powers; or
(c) the financial position and credit position of any District Council is seriously threatened; or
(d) a situation has arisen in which the administration of any District Council cannot be carried on in accordance with the provisions of this Act,
the Administrator may, by an order published, together with a statement of reasons therefor, in the Official Gazette, supersede such Council for such period, not exceeding one year, as may be specified in the order:
Provided that before making an order of supersession as aforesaid under clause (a) or clause (b) or clause (c), reasonable opportunity shall be given to such Council to show cause why such order of supersession should not be made:
Provided further that the period of supersession may be extended for any further period or periods not exceeding six months at a time in consultation with the Hill Areas Committee.
(2) When any District Council is superseded by an order under sub-section (1),—
(a) all the members of the Council (including the Chairman and Vice-Chairman thereof) shall, on such date as may be specified in the order, vacate their offices as such members without prejudice to their eligibility for election or nomination under clause (d);
(b) during the period of supersession of the Council, all powers and duties conferred and imposed upon the Council by or under this Act or any other law shall be exercised and performed by such officer or authority as the Administrator may appoint in this behalf;
(c) all property vested in the Council shall, until it is reconstituted, vest in the Central Government;
(d) before the expiry of the period of supersession, election or nomination, as the case may be, of members to the Council shall be held or made for the purpose of reconstituting the Council.