(1) The Licensing Authority may, on the advice of the Commissioner, suspend the License if the Commissioner has reason to believe that the Licensee has acted in violation of any provision of this Act or the Rules made thereunder or any conditions of the License; or the Commissioner has reason to believe that die License has been obtained by furnishing incorrect infonnation which the Licensee knows or believes to be false or does not believe to be true, may initiate the procedure for cancellation of License and if the Licensing Authority deems fit, it may also suspend the License with immediate effect till the decision on the issue of cancellation of License is taken by the Licensing Authority.
(2)After following the procedure as may be prescribed in the Rules, if it is found by the Licensing Authority that the Licensee has violated any provision of this Act or the Rules made thereunder or any conditions of the License or where the License was found to have been obtained by furnishing incorrect infonnation which the Licensee knows or believes to be false or does not believe to be true, the Licensing Authority shall cancel the License forthwith.
(3) Upon cancellation of License, the security deposit along with the balance annual fee for that year shall stand forfeited to the State Government: Provided that no action under sub-section (3) shall be taken unless the Licensee has been given an opportunity of being heard:
Provided further that the violation of the License terms may be compounded if the breach is remedied within thirty days of the breach having been established to the satisfaction of the Licensing Authority.
(4) If there is any delay in payment of License fee, the said breach may be compounded by payment of penalty over and above the due License fee calculated @18 per &Mum along with the due License fee.