40. Powers of Central Government to issue directions.—(1) Without prejudice to the foregoing
provisions of this Act, the Authority shall, in exercise of its powers and performance of its functions
under this Act, be bound by such directions on questions of policy, other than those relating to technical
and administrative matters, as the Central Government may give in writing to it from time to time:
Provided that the Authority shall, as far as practicable, be given an opportunity to express its views
before any direction is given under this sub-section.
(2) The decision of the Central Government, whether a question is one of policy or not, shall be final.
41.Power of Central Government to supersede Authority.—(1) If, at any time, the Central
Government is of the opinion—
(a) that, on account of circumstances beyond the control of the Authority, it is unable to discharge
the functions or perform the duties imposed on it by or under the provisions of this Act; or
(b) that the Authority has persistently defaulted in complying with any direction given by the
Central Government under this Act or in the discharge of the functions or performance of the duties
imposed on it by or under the provisions of this Act and as a result of such default the financial
position of the Authority or the administration of the Authority has suffered; or
(c) that circumstances exist which render it necessary in the public interest so to do, the Central
Government may, by notification and for reasons to be specified therein, supersede the Authority for
such period not exceeding six months, as may be specified in the notification and nominate a person
to look after the functions of the Authority:
Provided that before issuing any such notification, the Central Government shall give a
reasonable opportunity to the Authority to make representations against the proposed supersession
and shall consider the representation, if any, of the Authority.
(2) Upon the publication of a notification under sub-section (1) superseding the authority,—
(a) the Chairperson and other members shall, as from the date of supersession, be deemed to have
vacated their offices;
(b) all the powers, functions and duties which may, by or under the provisions of this Act, be
exercised or discharged by or on behalf of the Authority shall, until the Authority is reconstituted
under sub-section (3), be exercised and discharged by the person nominated by the Central
Government under clause (c) of sub-section (1);
(c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted
under sub-section (3), vest in the Central Government.
(3) On or before the expiration of the period of supersession specified in the notification issued under
sub-section (1), the Central Government shall reconstitute the Authority by a fresh appointment of its
Chairperson and other members and in such case any person who had vacated his office under clause (a)
of sub-section (2) shall not be deemed to be disqualified for reappointment.
(4) The Central Government shall cause a copy of the notification issued under sub-section (1) and a
full report of any action to be laid before each House of Parliament at the earliest.
(5) Notwithstanding anything contained in any law or in any contract or memorandum or articles of
association, on the removal of a person, from office under this section, that person shall not be entitled to
claim any compensation for the loss or termination of office.