(1) (a) Any person desirous of getting the privilege of manufacturing beer and a licence for brewery shall submit his scheme to Government in Form B-I. A fee of Rs.500 (Rupees five hundred only) shall be paid by him into a Government Treasury and the challan in original in support of such payment shall be enclosed to the application.
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(b) Where the Government are satisfied about the proposed scheme of the applicant, they may approve the scheme and communicate it to the applicant in the form of Letter of Intent in Form B-2 indicating therein the capacity of the plant. The Letter of Intent so given shall be valid unless specially extended, for a period of six months from the date of the communication of the letter, within which period, the holder of the Letter of Intent, may arrange for securing the land, estimates and plans for the building, plant and machinery and other equipments required for the working and construction of the brewery in terms of the scheme as stated in the application or as modified by the Government, as the case may be.
(c) The sanction accorded by the Government under clause (b) shall not confer any right or privilege for the grant of a licence and the Government may withdraw such sanction in public interest at any time, on the expiration of not less than thirty days notice in writing of their intention to do so.
(d) When the sanction is withdrawn under clause (c), the holder thereof shall not be entitled to any compensation for damage or loss except to the refund of the fee paid.
(2) The Government may reject the request of the applicant for sanction of the scheme on all or any one or more of the following grounds, namely:-
(a) that the applicant is not suitable for the grant of privilege;
(b) that the application is not made bonafide on his behalf and is made in benami of any other person;
(c) that the location of the proposed brewery is not suitable.
(d) that the applicant has not secured the necessary water supply and power;
(e) that the financial position of the applicant is not sound;
(f) that the proposed building is not suitable for that purpose;
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(g) that the arrangements proposed for the disposal of the effluents is not satisfactory;
(h) that the establishment of brewery is of uneconomical size;
(i) that the applicant has not secured proper technical assistance; and
(j) that the number of the breweries already in existence in this State is considered sufficient, having regard to the desirability of avoiding uneconomic competition.
(3) The Government may, for any other reason, reject an application for sanction of the scheme after giving an opportunity to the applicant of being heard.