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The Correction Centre was a section underneath the Collector's palace on Pluto. Lawbreakers who offended the Company were taken there as punishment and were subject to various tortures. Many lost the memories due to the hardships they endured.
Kandor, an Executive Grade from Megropolis Four, was taken there after stealing millions of telmars from the Company. He was the only person to ever survive the treatment there.
The Fourth Doctor was taken there after he used an invalid consumcard and was rendered unconscious by balerium gas. There he found himself in a straight jacket in a cell alongside Bisham, another prisoner. The Doctor managed to stand upright and hop across to a control bank. He then tampered with it, making it dangerous to an operator.
A man entered and fitted them both with species helmets. As he went to turn them on, he was electrocuted and the control exploded. This gave them a temporary relieve and men were sent to repair the controls. Marn visited the Doctor and had him released.
Leela and K9, believing the Doctor to still be a prisoner, broke into the Centre. Killing a guard and blasting the door open, they entered the Doctor's former cell. They freed Bisham and set off in search of the Doctor. (DW: The Sun Makers)