(1) If the authorised officer is satisfied, either on a reference made to him in this behalf or otherwise, that—
(a) a licence granted under section 7 has been obtained by misrepresentation as to an essential fact, or
(b) the holder of a licence has, without reasonable cause, failed to comply with the conditions subject to which the licence has been granted, or has contravened any of the provisions of this Act or the rules or the orders made thereunder, then, without prejudice to any other penalty to which the holder of such licence may be liable under this Act, the authorised officer may, after giving the holder of the licence a reasonable opportunity of being heard, cancel or suspend the licence or forfeit the whole or any part of the security, if any, furnished under sub-section (5) of section 7.
(2) Subject to any rules that may be made in this behalf, the authorised officer may also vary or amend a licence granted under section 7.