Punishment for false display of recognition

(1) Any service provider, who is not recognized and registered under and in accordance with the provisions of this Act, falsely displays or purports to show colourable imitation thereof with the object that he is recognized and registered by the Department of Tourism or the State Government as a service provider for specific services, the prescribed authority shall have power to impose a penalty of, not exceeding Rs. 10,000 for the first such offence, and not exceeding rupees one lakh for second or subsequent offence:

Provided that before ordering imposition of penalty, the prescribed authority shall afford reasonable opportunity of showing cause against the proposed action.