Effect of transactions not bona fide

Where the Government are of opinion that the licensee has on or after the appointed day disposed of any fixed asset whether by way of sale, exchange, gift, leases or otherwise or incurred any expenditure, liability or obligation otherwise than in the normal course of events, with a view to benefit unduly the licensee or some other person and thereby caused loss to the Government as succeeding owners of the undertaking, the Government shall be entitled to deduct from the amount payable to the license under this Act, an amount which they consider to be the loss sustained by them: Provided that before making such deduction, the licensee shall be given a notice within three months of the appointed day to show cause against such deduction, within a period of fifteen days from the date of receipt of such notice.