(1) Notwithstanding anything in the foregoing rules, the Divisional Forest Officer may where he has reason to believe that a licensee has contravened the provision of Act or any rule made thereunder at any time, revoke the licence granted under these rules, after giving the licensee an opportunity of being heard.
(2) For any violation of the provisions of the Act, or the rules made thereunder by the licencee, the Divisional Forest Officer shall be competent to seize and confiscate any forest produce together with machinery, implements, and equipments which might have been used in the commission of the offence.
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(3) In case of violation, where it is not proposed to either revoke the licence or seize and confiscate the produce etc., the Divisional Forest Officer shall be competent to impose a penalty not exceeding a sum of rupees ten thousand or upto the extent of the security deposit.
(4) All penalties levied shall be paid by the licensee within fifteen days from the date of despatch by Registered post of the order of the notice of demand for payment. In case of failure to pay the penalties in time, the same will be adjusted from the security deposit, which shall be replenished immediately. The licence granted shall be deemed to be inoperative until such time the licensee replenishes the adjustments in the security deposit.
(5) In the event of revocation of licence under sub-rule (1) or seizure and confiscation of forest produce together with machinery implements etc., under sub-rule (2) the Divisional Forest Officer shall be competent to forfeit security deposit either in part or the whole.