(1) No applicant is eligible for the privilege, if he is convicted for any offence under the Karnataka Excise Act, 1965 and rules made there under or any other criminal offence and sentenced to imprisonment for more than three years.
(2) The application for the grant of licence for the privileges of tapping, production, possession and processing of Neera and production of value added products shall be made in Form I and that for the distribution of Neera, value added products from Neera shall be made in Form III to the Competent Authority. On receipt of the application, the Competent Authority shall verify the application, and if the conditions prescribed for the grant of licence are found to have been complied with, may issue the licence for the privileges of tapping, production, possession and processing of Neera and production of value added products in Form II and the licence for the privilege of distribution of Neera and its value added products may be issued in Form IV. The Competent Authority may reject the application for reasons to be recorded in writing.
(3) Coconut Producer Company or Farmer Producers Organizations shall obtain in principle approval from Excise Department before establishing the Neera Processing Unit or a cold chain.
(4) Any Coconut Producer Company or Farmer Producers Organizations shall be given licence only when they set up Neera Processing Unit or a cold chain.
(5) The assignment and marking of Coconut trees for tapping shall be in accordance with the Karnataka Excise (Tapping of Trees) Rules, 1991.
(6) The Licensee shall engage only Neera technicians for tapping/ collection of Neera.
(7) Palm tax of rupees ten shall be levied on each tree marked for the purpose of tapping tree.
(8) The technology adopted for extracting, transportation and processing of Neera shall be as specified and approved by the Department of Horticulture.
(9) The quality of Neera produced shall be as per the standards adopted by the Department of Horticulture for quality of Neera.
(10) Applications for grant of licence shall be made at least one month before the commencement of tapping of trees.
(11) Applications for renewal of licence shall be made at least one month before the expiry of licence already granted.
(12) On receipt of the application for grant or renewal of licence, the Competent Authority may require such other particulars as he may deem necessary and may make inquiries for verification of the particulars furnished by the applicant and also such other inquiries as he deems fit. In any case, the Deputy Commissioner of Excise shall take a decision for the grant or renewal of licence, as the case may be, within fifteen working days from the date of receipt of application.
(13) No Neera shall be drawn except during the currency of such licence.
(14) The licensee or his authorised representatives shall not tap any tree in excess of the number of trees for which he is licensed to tap.
(15) No tree shall be tapped nor Neera shall be drawn from any tree, or any vessels/receptacles be attached for the purpose, until the trees have been marked by the authorised officer in accordance with these rules.
(16) The Transportation of Neera to Processing Unit and to the distribution point is the responsibility of the Company.
(17) The licensee shall be responsible to ensure that Neera is not converted into Toddy.
(18) Violation of any of the provisions of these rules is an offence under the Karnataka Excise Act, 1965 and it is punishable under sub-section (4) of section 32 of the Act.