Section 28
Contracts to cease to have effect unless ratified by the foundation.
The Auroville Foundation Act, 1988
About this Act
An Act to provide for the acquisition and transfer of the undertakings of Auroville and to vest such undertakings in a foundation established for the purpose with a view to making long-term arrangements for the better management and further development of Auroville in accordance with its original charter and for matters connected therewith or incidental thereto.
Every contract entered
into by the Society, trust or body in relation to its undertakings for any service, sale or supply, and in
force immediately before the appointed day, shall, on and from the expiry of one hundred and eighty days
from that day, cease to have effect unless such contract is, before the expiry of the said period, ratified in
writing by the Central Government or, as the case may be, the Foundation, and in ratifying such contract,
the Central Government or, as the case may be, the Foundation may make such alterations or
modifications therein as it may think fit:
Provided that the Central Government or, as the case may be, the Foundation shall not omit to ratify a contract and shall not make any alteration or modification therein,--
(a) unless it is satisfied that such contract is unduly onerous or has been entered into in bad faith or is detrimental to the interests of the Central Government or, as the case may be, the Foundation; and
(b) except after giving the parties to the contract a reasonable opportunity of being heard and except after recording in writing its reasons for its refusal to ratify the contract or for making any alteration or modification therein.
Provided that the Central Government or, as the case may be, the Foundation shall not omit to ratify a contract and shall not make any alteration or modification therein,--
(a) unless it is satisfied that such contract is unduly onerous or has been entered into in bad faith or is detrimental to the interests of the Central Government or, as the case may be, the Foundation; and
(b) except after giving the parties to the contract a reasonable opportunity of being heard and except after recording in writing its reasons for its refusal to ratify the contract or for making any alteration or modification therein.