Section 398(1) in The New Delhi Municipal Council Act, 1994
(1)If, in the opinion of the Central Government, the Council is not competent to perform, or persistently makes default-(a)in the performance of, the duties imposed on it by or under this Act or any other law, or exceeds or abuses its power; or(b)fails to deliver efficient service to the public and generally in regard to the municipal administration, or(c)to comply with the directions given to the Council by the Central Government in regard to matters relating to clauses (a) and (b), the Central Government may by an order published, together with a statement of the reasons therefor, in the Official Gazette, dissolve the Council: Provided that the Council shall be given reasonable opportunity of being heard before its dissolution.
