If the District Magistrate observes any marked incompetence or unfitness for the locality or for his particular duties, in any Police Officer subordinate to the Superintendent he may require the Superintendent to substitute another officer for any officer whom he has power to transfer and the Superintendent shall be bound to comply with the requisition:

Provided that, if the Police officer concerned is an officer of a grade higher than that of an Inspector the District Magistrate may report his conduct to the Director-General and Inspector-General. The Director-General and Inspector-General may, thereafter, determine the action to be taken and pass such orders as he thinks fit, and shall communicate such action or order to the District Magistrate.