Power of Government to terminate aid on account of default -(1) The

Government may, by order and for reasons to be recorded therein, terminate aid in respect of an industry on all or any of the following grounds:-

1. (i) that any portion of the aid granted has been misapplied;
2. (ii) that there has been a breach by the recipient of aid of the provisions of this Act, or of any rules made thereunder or of any condition of the grant of aid;
3. (iii) that the application on which the aid has been granted contained, or was accompanied by any material statement by the applicant which he knew to be false or any intentional concealment by him of any material fact, which in the opinion of the Government, it was his duty to disclose or that any such false statement or concealment was intentionally made in any inquiry under this Act, by or with connivance of the applicant or in any return under the Act, or in reply to any requisition for information under this Act;
4. (iv) that the industry is being managed in such manner as to endanger the repayment of the amount of the aid granted thereto repayable under this Act, or make it impossible to return the money value of the aid under this Act: Provided that no such order shall be passed unless the recipient is given an opportunity of making his representation.

1. (2) Notwithstanding anything in this Act, the Government may, on the termination of aid under sub-section (1), proceed to recover from the grantee:-
   • (a) the whole of amount of any loan outstanding together with such interest as may be due thereon;
   • (b) the cost of recovery, if any, and where the Government to direct, the cost of any inquiry in connection therewith.
2. (3) Any order passed by the Government under sub-section (1) or sub- section (2) shall be final.