(1)

Without prejudice to any other action which may be taken against a licensee, the licensing authority may, by order in writing, cancel an agent's licence or suspend it for such period as it thinks fit, if, in its opinion, there has been any contravention of any of the conditions under which the premises have been approved or under which the licence has been granted.

(2)

Before making any order of suspension or cancellation under sub-rule (1), the licensing authority shall give the licensee an opportunity of being heard and shall record reasons in writing for such cancellation or suspension.

(3)

Where a licence is liable to be cancelled or suspended under sub-rule (1), except in the case of a contravention of condition (c) of sub-rule (2) of rule 205 and the licensing authority is of the opinion that having regard to the circumstances of the case, it would be unnecessary or inexpedient so to cancel or suspend the licence, if the licensees agrees to pay a certain sum of money, then, notwithstanding anything contained in sub-rule (1) the licensing authority, may, instead of cancelling or suspending the licence, as the case may be, recover from the licensee the sum of money agreed upon, not exceeding rupees five thousand at a time.

(4)

Where an appeal has been preferred the power exercisable by the licensing authority under sub-rule (1) may be exercised also by the appellate authority.

(5)

The licensing authority may order the forfeiture in whole or in part, of the security furnished by the licensee under sub-rule (4) of rule 199 for contravention of any provision of this rule or of rules 198, 199, 204 to 209 by the licensee :

Provided that no such forfeiture shall be made unless the licensee is given an opportunity of being heard.

(6)

In the event of the forfeiture of a security deposit or part thereof, by the licensing authority, the licence shall cease to be valid if the licensee fails to make the payment to bring to security already furnished by him to its original value within thirty days of the receipt of the order of forfeiture.