The fifth and the fourteenth amendments guarantee that no federal or state regulatory agency shall deprive anybody of his life, liberty or property without due process of law. These agencies are obliged to give advance warning to the affected person on the restrictions that might be placed on his actions by the regulatory bodies. A regulatory body is also bound to give reasonable opportunity appropriate under the circumstances to the concerned person to challenge the agency’s action.
An agency cannot take any decision, which is prejudicial or detrimental to the interests of any person without giving chance to the said affected to object or without hearing him.
For instance, such agencies cannot withdraw or terminate benefits conferred under law to any person who meets the conditions of entitlement to such benefits, without giving him audience and except for good or compelling reasons. Similarly agencies cannot take punitive action against anybody without hearing the concerned person or without affording him the opportunity to defend.
These checks and balances are for preventing abuse or excess of powers by the administrative agencies. Such measures also block arbitrariness or overreaching of administrative actions.
