( 1) During the continuance of State aid to any industry the profits of such industry shall, if d1stnbuted, be d1suibutcd only after intere-.t due on debentuies and loans has been paid and a 1 easonablc amount has been set aside for depreciation 01 obsolescence of machinery and buildings and a further reasonable amount has been carried to reserve fund to be utilised in the prescnbed manner.
(2) No dividend shall be paid to shareholders and no profit shall he taken by the owner in exce:,s of such percentage rate upon the 208 amount of the capital of the industt y as the Government may fix from time to time during the continuance of State aid to any industry.
19. Powc1 of Govmnne11t lo ad1ust security during cwre11cy ef loans. If at any time the amount of any loan oumandmg together with such interest as may be due thereon on account of any State aid given i<> found to exceed the percentage fixed under sub-section ( I ) of c;ecuon 13, the Government may either recove1 so much of such balance as is in excess of such percentage or take <;;uch additional or collateral security as they may deem sufficient.
' 20. Powe1 of authonty sa11ctw11ing the loan to terminate azd.-( I ) If the authority sanctronmg the loan is sati fied-
(i) that the whole or any portion of the State aid given has Leen misapplied, or
(u) that there has been a breach by the grantee of the aid of the provisions of this Act, or of any rule made thereunder or of any con ditions of the grant, or
(zit) that the application on which the State aid has been granted contained or was accompanied by, any material statement by the g rantee of the aid which he knew to be false or d1d not believe to be true or any intentional concealment by h im of any material fact, which in the opinion of the authority sanctioning the loan 1t was his duty to disclose, or that any such false statement or concealment was intentionally made in any inquiry made under this Act by or with the connivance of the owner or in any return under this Act or in 1·eply to any requisition for informatio n under this Act, or
(w) that the industry is being managed in such manner as to endanger the repayment of the value of State aid g1anted thereto rep.t yable under thi:. Act, the authority may by order in writing terminate the State a id specifying the reason or reasons therefor.
(2 ) No such order as mentioned in sub-section ( 1) shall be passed w ithout giving the grantee an opportunity to show cause within a specified time why action should not be taken under this section.
(3) Where an order terminating the aid is made under sub.
section (I), then, notwithstanding any th mg contained in this Act or m any other law, the authority sanctioning the aid may proceed to1ecover from the giantee of the aid, as arrea1s of land revenue,-
(a) the entire amount of any loan outstanding together with interest a'> may be due thereon, 01
(b) in ca<;es where the a id is g1ven otherwise than by loan, the money value of the aid as fixed at the time when it was made, together with interest due the1 con, and
(c) 1n the case mentioned in clause (a) orclause (b), the cost of recovery, and, if the Government so direct the cost of any inquiry made in connectjon therewith .
(4) An order made under this section shall be final and shaJI not be called in question in any court of law.
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