(1) The licensee shall on being required to do so by the Divisional Forest Officer, and before the issue of licence, make a deposit in favour of Divisional Forest Officer a minimum amount of 1[Rs. 500/- but not exceeding Rs. 5,000/-] as security deposit towards due observance of provisions of the Act, and the rules made thereunder.
2[x x x]
(2) The discretion of fixing the amount of Security deposit in each case shall vest with the Divisional Forest Officer, who shall take into consideration the nature and quantities of forest produce to be stored at the depot while fixing the amount. The decision of the Divisional Forest Officer shall be final.
3[(3) The security deposit for common licence for the saw mill and the depot would be calculated as per Telangana Saw Mill (Regulation) Rules, 1969 and no separate deposit under these rules is to be calculated or collected.]