(1) The Authority shall cause to be conducted an audit of all registered mental health establishments by such person or persons (including representatives of the local community) as may be prescribed, every three years, so as to ensure that such mental health establishments comply with the requirements of minimum standards for registration as a mental health establishment.
(2) The Authority may charge the mental health establishment such fee as may be prescribed, for conducting the audit under this section.
(3) The Authority may issue a show cause notice to a mental health establishment as to why its registration under this Act not be cancelled, if the Authority is satisfied that—
(a) the mental health establishment has failed to maintain the minimum standards specified by the Authority; or
(b) the person or persons or entities entrusted with the management of the mental health establishment have been convicted of an offence under this Act; or
(c) the mental health establishment violates the rights of any person with mental illness.
(4) The Authority may, after giving a reasonable opportunity to the mental health establishment, if satisfied that the mental health establishment falls under clause (a) or clause (b) or clause (c) of sub-section (3), without prejudice to any other action which it may take against the mental health establishment, cancel its registration.
(5) Every order made under sub-section (4) shall take effect—
(a) where no appeal has been preferred against such order, immediately on the expiry of the period specified for preferring of appeal; and
(b) where the appeal has been preferred against such an order and the appeal has been dismissed, from the date of the order of dismissal.
(6) The Authority shall, on cancellation of the registration for reasons to be recorded in writing, restrain immediately the mental health establishment from carrying on its operations, if there is imminent danger to the health and safety of the persons admitted in the mental health establishment.
(7) The Authority may cancel the registration of a mental health establishment if recommended by the Board to do so.