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A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud issued notice and sought a reply from the Centre.
The state government on September 6 appointed Dilbagh Singh as acting police chief, replacing S P Vaid who was posted as transport commissioner.
During the hearing, Attorney General K K Venugopal, who appeared for the Centre, said the prohibition to appoint an acting DGP was introduced to prevent misuse of the two-year fixed tenure given in an earlier verdict of the apex court.
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“We cannot afford the police force to be without a chief,” he said, citing the law and order situation in Jammu and Kashmir.