Delegation of power to Regional Directors to receive inspector reports and initiate or refer prosecution on recommended offences. The Central Government delegates to specified Regional Directors the authority to receive reports from Registrars or Inspectors recommending action for offences punishable with imprisonment under two years, excluding certain chapters and sections retained by the Central Government. Regional Directors shall examine such reports, obtain legal advice as needed, direct prosecution where they concur with the recommendation, and notify the Central Government with reasons when they do not; reports recommending action outside the delegated category must be forwarded to the Central Government for prosecution initiation.