(1) After receipt of an application for grant of licence under section 97, the licensing authority shall, as soon as possible, publish a notice in at least two daily newspapers describing the name and address of the person to whom it proposes to issue the licence with all particulars of the scheme and invite objections from the persons who are likely to be affected by the execution of such scheme.
(2) After considering the objections, if any, and the suggestions received in response to the notice as provided in sub-section (1) and after ascertaining that––
(a) the scheme of the applicant has been approved by the Authority or the Government, as the case may be ;
(b) the applicant complies with the requirements of capital adequacy and credit worthiness ; and
(c) the applicant possess a good moral conduct and is not involved in any criminal activity,
the licensing authority may issue a licence specifying therein the following––
(i) the quantity of water to be used by the licensee ;
(ii) the works for which the licence is issued ;
(iii) the source of water to be used by the licensee ;
(iv) in case of dam, the specifications thereof ;
(v) the amount of fee to be paid by the licensee ;
(vi) the period of validity of the licence ; and
(vii) other terms and conditions of the licence :
Provided that in case the area proposed to be covered under the scheme for which the licence is sought includes the whole or any part of any cantonment area, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Central Government for defence purposes, the licensing authority shall seek no objection to the grant of licence from the concerned Ministry of the Central Government before issuing such licence.
(3) If the licensing authority is of the opinion that the applicant does not qualify for grant of licence under the provisions of the Act or if it upholds the objections filed by any person against the grant of such licence, it may reject the application for grant of licence after recording the reasons therefor.
(4) Any person aggrieved by the decision of the licensing authority either granting the licence or rejecting the same may, where the Government is not the licensing authority, prefer an appeal to the Authority within a period of thirty days from the date of such decision and the Authority shall decide the said appeal after giving the aggrieved party a reasonable opportunity of being heard and its decision shall be final.
(5) Where the licensing authority is the Government, the aggrieved person may prefer a review petition within a period of thirty days from the date of decision, either granting the licence or rejecting same, and the decision of the Government on such review petition shall be final.