law: Insurance Regulatory and Development Authority Act, 1999
  19. Power of Central Government to supersede Authority
  (1) If at any time the Central Government is of the opinion-
  (a) that, on account of circumstances beyond
  
  the control of the Authority, it is unable to discharge the functions or
  
  perform the duties imposed on it by or under the provisions of this Act; or
  (b) that the Authority has persistently
  
  defaulted in complying with any direction given by the Central Government under
  
  this Act or in the discharge of the functions or performance of the duties imposed
  
  on it by or under the provisions of this Act and as a result of such default
  
  the financial position of the Authority or the administration of the Authority
  
  has suffered; or
  (c) that circumstances exist which render it
  
  necessary in the public interest so to do,
  the Central Government may, by notification and for reasons to
  
  be specified therein, supersede the Authority for such period, not exceeding
  
  six months, as may be specified in the notification and appoint a person to be
  
  the Controller of Insurance under section 2B of the Insurance Act, 1938, if not
  
  already done:
  PROVIDED that before issuing any such notification, the
  
  Central Government shall give a reasonable opportunity to the Authority to make
  
  representations against the proposed supersession and shall consider the
  
  representations, if any, of the Authority.
  (2) Upon the publication of a notification under sub-section (1)
  
  superseding the Authority,-
  (a) the Chairperson and other members shall,
  
  as from the date of supersession, vacate their offices as such;
  (b) all the powers, functions and duties which
  
  may, be or under the provisions of this Act, be exercised or discharged by or
  
  on behalf of the Authority shall, until the Authority is reconstituted under
  
  sub-section (3), be exercised and discharged by the Controller of Insurance;
  
  and
  (c) all properties owned or controlled by the
  
  Authority shall, until the Authority is reconstituted under sub-section (3),
  
  vest in the Central Government.
  (3) On or before the expiration of period of supersession
  
  specified in the notification issued under sub-section (1), the Central
  
  Government shall reconstitute the Authority by a fresh appointment of its
  
  Chairperson and other members and in such case any person who had vacated his
  
  office under clause (a) of sub-section (2) shall not be deemed to be
  
  disqualified for reappointment.
  (4) The Central Government shall cause a copy of the
  
  notification issued under sub-section (1) and a full report of any action taken
  
  under this section and the circumstances leading to such action to be laid
  
  before each House of Parliament at the earliest.