(2)The [State] Government may, instead of a withdrawing [the recognition] under sub-section (1), by notice served on the manager of the [institution], prohibit the admission of children or youthful offender to the [institution] for such time as may be specified in the notice or until the notice is revoked.[(3) The State Government, if dissatisfied with the conditions, rules, management or superintendence of an Observation Home, may at any time by notice served on the managers of that institution and after giving the managers a reasonable opportunity of being heard, cancel the declaration of that institution as an Observation Home, and shall by an order in writing take over the management of the institution in the prescribed manner for a temporary period not exceeding five years or for special reasons to be recorded in writing such further period not exceeding two years as may be specified in the order.
