Section 5 of TRAI : Section 5: Term Of Office, Conditions Of Service, Etc, Of Chairperson And Other Members

Explanation using Example

Imagine that the Central Government is in the process of appointing a new Chairperson for the Telecom Regulatory Authority of India (TRAI). The candidate being considered for this position currently holds a significant amount of shares in a major telecommunications company. Before the appointment can proceed, the government, as per Section 5(1) of the TRAI Act, 1997, must ensure that the candidate does not have any financial interests that could potentially influence his decision-making as Chairperson. Consequently, the candidate must divest his telecommunications shares to avoid a conflict of interest.

Once appointed, the new Chairperson's term of office, according to Section 5(2), will not exceed three years, and he must retire from the position upon reaching the age of sixty-five, if this occurs before the end of his term.

Should there be an amendment to the TRAI Act that requires the current Chairperson to vacate the position, as per Section 5(3), they would be entitled to compensation equivalent to three months of pay and allowances for the premature termination of their office.

If the selected Chairperson is a government employee, as per Section 5(4), they must retire from their government service before officially joining TRAI.

The Chairperson's salary and allowances, along with other terms of service, will be determined as prescribed by the law, in accordance with Section 5(5), and these terms cannot be altered to their disadvantage after their appointment, as stated in Section 5(6).

If the Chairperson wishes to resign before their term ends, they must provide a three-month notice as required by Section 5(7)(a), or they could be removed under the conditions provided in Section 5(7)(b) and detailed in Section 7 of the Act.

After the Chairperson's term ends, they are prohibited from accepting certain types of employment for a period of two years, as specified in Section 5(8), to prevent any potential conflict of interest or influence.

If a vacancy occurs, the government is mandated by Section 5(9) to fill the position within three months to ensure the effective functioning of TRAI.