(1) The State Government may, in its discretion establish ¹[as many protective homes and corrective institutions under this Act as it thinks fit and such homes and institutions], when established, shall be maintained in such manner as may be prescribed.
     (2) No person or no authority other than the State Government shall, after the commencement of this Act, establish or maintain any ²]protective home or corrective institution] except under and in accordance with the conditions of a licence issued under this section by the State Government.
     (3) The State Government may, on application made to it in this behalf by a person or authority issue to such person or authority, a licence in the prescribed form for establishing and maintaining or as the case may be, for maintaining a ³[protective home or corrective institution] and a licence so issued may contain such conditions as the State Government may think fit to impose in accordance with the rules made under this Act:
     Provided that any such condition may require that the management of the ³[protective home or corrective institution] shall, wherever practicable, be entrusted to women:
     Provided further that a person or authority maintaining any protective home at the commencement of this Act shall be allowed a period of six months from such commencement to make an application for such licence:
     ⁴[Provided also that a person or authority maintaining any corrective institution at the commencement of the Suppression of Immoral Traffic in Women and Girls (Amendment) Act, 1978 (46 of 1978), shall be allowed a period of six months from such commencement to make an application for such licence.]
     (4) Before issuing a licence the State Government may require such officer or authority as it may appoint for this purpose, to make a full and complete investigation in respect of the application received in this behalf and report to it the result of such investigation and in making any such investigation the officer or authority shall follow such procedure as may be prescribed.
     (5) A licence, unless sooner revoked, shall remain in force for such period as may be specified in the licence and may, on application made in this behalf at least thirty days before the date of its expiration, be renewed for a like period.
     (6) No licence issued or renewed under this Act shall be transferable.
     (7) Where any person or authority to whom a licence has been granted under this Act or any agent or servant of such person or authority commits a breach of any of the conditions thereof or any of the provisions of this Act or of any of the rules made under this Act, or where the State Government is not satisfied with the condition, management or superintendence of any ³[protective home or corrective institution], the State Government may, without prejudice to any other penalty which may have been incurred under this Act, for reasons to be recorded, revoke the licence by order in writing:
     Provided that no such order shall be made until an opportunity is given to the holder of the licence to show cause why the licence shall not be revoked.
     (8) Were a licence in respect of a ³]protective home or corrective institution] has been revoked under the foregoing sub-section such ³[protective home or corrective institution] shall cease to function from the date of such revocation.
     (9) Subject to any rules that may be made in this behalf, the State Government may also vary or amend any licence issued or renewed under this Act. ⁴[(9A) The State Government or an authority authorised by it in this behalf may, subject to any rules that may be made in this behalf, transfer an inmate of a protective home to another protective home or to a corrective institution or an inmate of a corrective institution to another corrective institution or to a protective home, where such transfer is considered desirable having regard to the conduct of the person to be transferred, the kind of training to be imparted and other circumstances of the case:
     Provided that,--
         (a) no ⁵[person] who is transferred under this sub-section shall be required to stay in the home or institution to which he is transferred for a period longer than he was required to stay in the home or institution from which he was transferred;
         (b) reasons shall be recorded for every order of transfer under this sub-section.]
(10) Whoever establishes or maintains a ³[protective home or corrective institution] except in accordance with the provisions of this section, shall be punishable in the case of a first offence with fine which may extend to one thousand rupees and in the case of second or subsequent offence with imprisonment for a term which may extend to one year, or with fine which may extend to two thousand rupees, or with both.