Section 25(1) in The Aadhaar (Authentication) Regulations, 2016
(1)Where any requesting entity or an ASA appointed under the Act,(a)fails to comply with any of the processes, procedures, standards, specifications or directions issued by the Authority, from time to time;(b)is in breach of its obligations under the Act and these regulations;(c)uses the Aadhaar authentication facilities for any purpose other than those specified in the application for appointment as requesting entity or ASA,(d)fails to furnish any information required by the Authority for the purpose of these regulations; or(e)fails to cooperate in any inspection or investigation or enquiry or audit conducted by the Authority, the Authority may, without prejudice to any other action which may be taken under the Act, take such steps to impose disincentives on the requesting entity or an ASA for contravention of the provisions of the Act, rules and regulations there under, including suspension of activities of such entity or agency, or other steps as may be more specifically provided for in the agreement entered into by such entities with the Authority:Provided that the entity or agency shall be given the opportunity of being heard before the termination of appointment and discontinuance of its operations relating to Aadhaar authentication.
