(a) The administrator, on application of either party or on his own initiative, and upon notice to all parties affected, may, prior to the date that a proceeding for judicial review has been commenced in the Supreme Court, pursuant to article 78 of the Civil Practice Law and Rules, modify, supersede or revoke any order issued by him under these or previous regulations where he finds that such order was the result of illegality, irregularity in vital matters, or fraud. Where an order is modified, superseded or revoked by the administrator, he may also direct that appropriate rent adjustments be made in accordance with the order issued.

(b) Whenever the administrator shall have revoked an order premised on fraudulent or materially false representations, the administrator, notwithstanding any other provision of these regulations to the contrary, may withhold the issuance of any order granting an increase in maximum rent for such housing accommodation until the landlord has complied with the refund directive, if any, provided for in such order of revocation.