Section 3(8) in The M.P. Van Upaj other than Timber (Vyapar Viniyaman) Niyam, 1969
(8)(i)On appointment as an agent, the person or Cram Panchayat, or Co-operative Society including Madhya Pradesh State Tribal Co-operative Development Corporation, §o appointed shall executive a agreement in Form B within fifteen days of the issue of the order of appointment, failing which the appointment shall be liable to be cancelled and on such cancellation,-(a)the advance security deposit shall be forfeited; and(b)the agent shall be liable to pay the loss, if any, incurred by the State Government as a result of cancellation of the appointment. The loss will be a sum to be calculated as under:-(A)Loss to Government.(B)The difference of the quantity of the specified forest produce notified for the unit and the total quantity which is collected and delivered.(R)Rate per unit of quantity at which Government sells specified forest produce minus all expenses per unit of quantity incurred by the Government till delivery of the specified forest produce to the purchaser.A - B x R i.e. the loss will be equal to an amount which results by the multiplication of the quantity which is collected and delivered short of the quantity notified for the unit and a figure which is the difference between the rate of sale per unit of quantity and all expenses per unit of quantity incurred by the Government till it is delivered to the purchaser.(C)The aforesaid loss shall be recoverable as arrears of land revenue.
