(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 provision of this Act or of any offence punishable under any law providing or 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 or any narcotic drugs or psychotropic substances or corruption,
(c) If any 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 hotel keeper;
(e) If the hotel is back-listed under section 13
(2) Any hotel, the name of which is removed from the register under subsection (I), shall forthwith cease to operate.
13. Black-listing of hotel.
(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 place in all tourist areas and all the travel agents, dealers and hotel keepers, foreign missions in India missions abroad shall be given a copy thereof and they may be requested to affix he 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 (I) 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 or prescribed fee and notify the same for the information of all concerned