An Inspection group comprising the Joint Commissioner (Prohibition and Excise) as Nodal Officer, Deputy Director (Chemicals) or Joint Director (Chemicals), Industries and Commerce Department and the Assistant Commissioner (Excise) of the neighboring District of the licensed premises, may inspect by surprise, verify and report to the Commissioner regarding illegal diversion of the spirit for illicit purposes, if any. Upon such report, the Commissioner shall cause initiation of disciplinary action / criminal action against the licence holder as per provisions in the Act and Rules. The inspection group shall give its report to the Commissioner about the proper functioning or otherwise of the licence holder for taking up effective disciplinary / criminal action against the licence holder, in respect of irregularities noticed by the inspection group.
19. Cancellation or suspension of licence: The licensing authority, may after giving the licence holder an opportunity to show cause within a reasonable time not ordinary exceeding fourteen days, against the order proposed to be made by an order in writing, stating the reasons therefor, cancel a licence or suspend it for such period as he thinks fit, either wholly or in part if in his opinion, the licence holder has failed to comply with any of the conditions of the licence or any of the provisions of the Act or the Rules framed thereunder.