(1) If, in the opinion of the Government, a market committee is not competent to perform or persistently makes default in performing, the duties imposed on it by or under this Act, or abuses its powers, the Government may, by notification, supersede such market committee for a period not exceeding one year in the first instance and may, by order, extend the period of supersession for a period not exceeding one year at a time, so however, that the total period of supersession in the case of any market committee shall not exceed four years:
Provided that, before issuing a notification under this sub-section, the Government –
(i) shall give a reasonable opportunity to the market committee of showing cause against the proposed action and shall consider the explanations and objections, if any, of the market committee; and
(ii) may, at its discretion, consult such authority or officer as it may deem fit.
(2) Upon the publication of a notification under sub-section (1) superseding a market committee, the following consequences shall ensue, namely: -
(a) all the members, as well as the Chairman and Vice-Chairman of the market committee, shall, as from the date of such publication, be deemed to have vacated their offices; and
(b) all the assets vested in the market committee shall, subject to all its liabilities vest in the Government.
(3) When a market committee has been superseded:-
(a) the Government may, at its discretion, by order appoint a suitable person or persons to carry out the functions of the market committee and transfer to such person or persons the assets and liabilities of the superseded market committee as on the date of such transfer; and
(b) at any time before the expiry of the period of supersession, the Government may establish a new market committee under section 4.
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CHAPTER – III FINANCE, CONTRACT AND PROPERTY.
Execution of contracts.