(1) Where after issuance of a permanent certificate of title under section 25, the Certification Authority is satisfied that the certificate has been issued under mistake and contains a declaration which is materially wrong, he may immediately suspend the certificate and call upon the title holder -
(i) to produce the certificate before him within such time as may be specified by him;
(ii) not to use the certificate for any purpose whatsoever; and
(iii) to furnish reasons as to why the certificate should not be cancelled or be modified in the manner as may be specified by him.
(2) When the title holder produces the certificate before the Certification Authority, he may impound the certificate and order to keep the certificate in such safe custody as he may specify until the certificate is cancelled or modified in accordance with the provisions of this section.
(3) Where the title holders does not furnish any reason or the Certification Authority is not satisfied with the reasons furnished by the title holder, the Certification Authority may cancel the certificate or, as the case may be, modify the same so as it may reflect the true nature of the title of the title holder in the land to which the certificate relates.
(4) Where the title holder uses the certificate for any purpose whatsoever after it has been suspended or cancelled, the Certification Authority may, after making such enquiry as he may think necessary and after affording a reasonable opportunity of being heard to such person, impose a penalty not exceeding, double the amount of value of the land to which the certificate related calculated at the DLC rates prevalent in the area in which the land is situate at the time of the use of such certificate.