The Licensing Authority, on receipt of the application in Form I or Form II, may make such enquiries as he deems fit, verify the particulars furnished therein, and if satisfied that all the requirements for the grant of licence have been complied with, may grant licence in Form III for tapping and sale of Neera and in Form IV for possession, transport, sale and distribution of Neera or for manufacture of any products from Neera in a Manufactory:
Provided that no licence shall be granted to a coconut producers company or a co-operative society, if it has been punished for any offence under the Act or the rules made thereunder:
Provided further that licence may be granted for a maximum of five per cent of the total coconut trees belonging to the members of the Coconut Producers 3 Company or the Co-operative Society or 40,000 (Forty thousand) trees, whichever is less.