Section 38(1) in Road Transport Corporations Act, 1950
(1)If the State Government is of opinion that a Corporation established by that Government is unable to perform, or has persistently made default in the performance of the duties imposed on it by or under the provisions of this Act or has exceeded or abused its powers, the State Government may, with the previous approval of the Central Government, by notification in the Official Gazette, supersede the Corporation for such period as may be specified in the notification:Provided that before issuing a notification under this sub-section the State Government shall give a reasonable time to the Corporation to show cause, why it should not be superseded and shall consider the explanation and objections, if any, of the Corporation.
