(1) The State Government or the authority who has sanctioned the State-aid may, after considering the explanation, if any , offered by the owner of any industry, order termination of State-aid sanctioned to such industry on any of the following grounds, namely:-



(a) that any portion of the State-aid has been mis-applied;



(b) that there has been breach by the owner of the industry of the provisions of this Act or of any rule made thereunder or of any condition of the grant;



(c) that the application on which the State-aid has been granted contained or was accompanied by any material statement by the owner which he knew to be false, or that there has been any intentional concealment by him of any material fact which, in the opinion of the State Government or the said authority it was his duty to disclose or that any such false statement or concealment was intentionally made in any enquiry held under this Act or in any return furnished under this Act or in any reply to any requisition for information issued under this Act or with the connivance of the owner or person in charge of the management of the industry :



(d) that the grantee has failed to comply with any order under clause (a) of section 10 or does not permit or objects to the inspection of the accounts of the industry or makes default in complying with the provisions of any of the clauses (c) (d) and (e) of section 10 ; or



(e) that the industry is being managed in such a manner as to impail, the repayment of the value of the State-aid granted thereto.



(2) Subject to such conditions or restrictions as may be prescribed, the State Government may delegate to such authority as may be proscribed, its power under sub-section (1) to terminate the State-aid of an amount or value not exceeding thirty thousand rupees in respect of any one industry.



(3) Any person aggrieved by an order, other than an order passed by the State Government, terminating the State-aid may prefer an appeal to such authority and within such period as may be prescribed



(4) The appellate authority may, after hearing the parties concerned and after holding such enquiry as may be prescribed, pass such orders as it may deem fit.