Section 3(8) in The Orissa Forest Produce (Control of Trade) Rules, 1983
(8)(i)On appointment as an agent, the person or Grama Panchayat or Co-operative Society including the Orissa State Tribal Development Cooperative Corporation, the Orissa Forest Corporation Ltd or any other Government Undertaking so appointed shall execute an 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, the agent shall be liable to pay the loss, if any, incurred by the Government as a result of cancellation of the appointment. The loss will be a sum to be calculated as under-A = B x R, Where'A' is the lose to Government'B' is the difference of the quantity of the specified forest produce notified for the unit and the total quantity which is collected and delivered, and'R' is the 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.Explanation - 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 the quantity and all expenses per unit of quantity incurred by the Government till it is delivered to the purchaser.(ii)The loss as calculated in the manner provided under Clause (i) shall be recoverable from out of the advance Security Deposit and in case of deficit the balance would be recovered as an arrear of land revenue under the provisions of the Orissa Public Demands Recovery Act, 1962.
