Section 8 in The Orissa Forest Contract Rules, 1966
8. Security Deposits.
- The Forest Contractors shall make security deposits to be fixed at 10 to 20 percent of the purchase price at the discretion of the Divisional Forest Officer, subject to a minimum of Rs. 100. The forest contractor who have taken forest coupe contracts within the same Division in any preceding three years will normally be required to make security deposit of 10 per cent, however, the Divisional Forest Officer will be competent to increase the security deposit in their cases for special reasons to be recorded. In case of forest contractors who have not taken a forest coupe contract within the same Division in any of preceding three years, the security deposit shall be 20 per cent of the purchase price. [Further in case of forest contractors who do not possess immovable property at all the Divisional Forest Offices at his discretion shall require from such contractors to pay security deposit at 25% of the purchase price.] [Added by Notification No. 2103-Co-op. and F. D.-D/6.11.1967-(O. G. P. III-Page 1368 of 1967).]Such security deposits shall be retained by the Divisional Forest Officer as security for the due observance and performance by the contact of the conversant and agreements contained in the forest contract executed by him and any sum or sums of money which shall become payable by the contractor to the Government of Orissa under any of the conditions of any forest contract may be deducted therefrom by the Divisional Forest Officer. In the event of any such deductions the contractor shall immediately on demand pay to the Divisional Forest Officer such sum as shall be required to make up the deposit to its full original amount. Pending the payment of such sum the Divisional Forest Officer may at his discretion prohibit the sale and removal of any produce from the lot covered by the contract and the contractor shall not be entitled to compensation for any loss that may be sustained by him owing to such prohibition :Provided that the sale up to the value of Rs. 500, shall be considered as cash sale and the amount deposited in advance pending ratification by competent authority :Provided always that if the amount deposited as security in respect of any forest contract is at any times or times not sufficient to make good any amount which may become payable to the Government of Orissa under the terms and conditions of the contract, the Divisional Forest Officer shall be entitled to deduct the balance due to him out of the security moneys deposited by the contractor and the contractor shall be bound, on demand to deposit forthwith additional moneys as security to make good any amount so deducted by the Divisional Forest Officer.
