Section 7 of The International Financial Services Centres Authority Act, 2019
The Central Government may remove from office a Member, who--
- (a)is, or at any time has been, adjudged as insolvent; or
- (b)has become physically or mentally incapable of acting as a Member; or
- (c)has been convicted of an offence which in the opinion of the Central Government involves moral turpitude;or
- (d)has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or
- (e)hasso abused his position so asto render his continuance in office detrimental to public interest: Provided that no Member shall be removed from office under clause (d) or clause (e) unless he has been given a reasonable opportunity of being heard in the matter.
Summary
- The Central Government has the exclusive power to remove a Member of the Authority from their position.
- A Member can be removed if they go bankrupt, become physically or mentally unable to do the job, or are convicted of a crime involving bad character (known as moral turpitude).
- A Member can also be removed if they acquire a financial or other interest that negatively affects their work as a Member.
- Finally, removal is permitted if a Member abuses their position so heavily that keeping them in office hurts the public interest.
- If the government wants to remove a Member for a conflict of interest or for abusing their position, they must first give the Member a fair chance to be heard.
Practical examples
FAQ
1. Who has the authority to fire a Member?
Only the Central Government can remove a Member from office.
2. Does a Member always get a warning or a hearing before being removed?
No. A hearing is only legally required if the removal is based on the Member having a harmful conflict of interest or for abusing their position. Events like bankruptcy or a criminal conviction do not require a hearing first.
3. What does moral turpitude mean?
It is a legal term referring to conduct that is considered fundamentally wrong or contrary to community standards of honesty and good morals, such as severe fraud or theft.
Test yourself
Q1.Under what specific circumstance is the Central Government legally required to give a Member a reasonable opportunity to be heard before removing them?
Q2.If a Member of the Authority loses all their money and is legally declared bankrupt (adjudged as insolvent), what action can be taken?
Q3.Which of the following best describes the kind of criminal conviction that allows the Central Government to remove a Member?
Q4.If the Central Government discovers a Member has acquired a financial interest likely to prejudice their functions, what is the mandatory first step before removal?