(1) If Government of Nepal thinks that the Council has failed to exercise the powers conferred to it pursuant to this Act or the Rules framed under this Act or has frequently abused powers or used excessive powers or failed to perform its duties pursuant to the Regulation framed under this Act, it  may give direction to the Council to rectify or correct the matter.
(2) If the Council fails to rectify or correct its acts and actions in pursuance of the direction given pursuant to Sub-section (1), Government of Nepal may dissolve the Council.
(3) After the dissolution of the Council pursuant to Sub-section (2), and pending the formation of another council, Government of Nepal may take custody of the fund and assets of the Council and itself exercise all such powers as may be exercisable by the Council pursuant to this Act or the Rules framed under this Act or cause to be exercised such powers by a committee formed by it.
(4) Government of Nepal shall form a new council pursuant to Section 5 within Three months after the dissolution of the Council pursuant to Sub-section (2).