Section 9 in The Bharat Hydro Power Corporation Limited (Acquisition and Transfer of Undertaking) Act, 1996
9. Effect of transaction not bonafide.
- Where the State Government is of the opinion that the company has, on or before the appointed day, disposed of any fixed asset whether by way of sale, exchange, gift, lease or otherwise or incurred any expenditure, liability or obligation otherwise than in the normal course of events, with a view to benefit the company or some other person unduly and thereby caused loss to the State Government as the succeeding owner of the company, the State Government, shall be entitled to deduct such amount from the amount payable to the company under this Act which it considers to be reasonable to compensate the loss caused by company :Provided that before making such deduction the company shall be given a notice not later than 12 months from the date of receipt of the assessment report from the Commission under sub-section (4) of Section 14, to show cause against such deduction within a period of fifteen days from the date of receipt of such notice.
