Section 15 in Andhra Pradesh Distillery (Manufacture of Spirits) Rules, 2006
15. Sub-leasing of distillery.
(1)The Commissioner may on application made by the holder of a Licence issued under these rules permit sub-leasing the whole licensed capacity of his licence to the proposed sub-lessee of a distillery.(i)No sub-lease shall be permitted unless:(a)a sub-lease fee of sum equal to 10% (Ten percent) of the annual licence fee is permitted in Government treasury.(b)the licensee keeps a security deposit of an amount equal to 15% (Fifteen percent) of the annual licence fee of the distillery in the shape of Fixed Deposit Receipt or Bank Guarantee from a Scheduled Bank situated in Andhra Pradesh in the name of the Commissioner.(ii)The proposed sub-lessee referred to in sub-rule (1) shall not be a person disqualified to hold a licence under the A.P. Excise Act, 1968 and the rules made there under.(iii)The sub-lease, permitted under sub-rule (1) shall be for a period of one year or part thereof and such sub-lease holder shall not have any claim for renewal of such sublease:(iv)The Commissioner may for reasons to be recorded in writing refuse to grant permission for sub-lease or withdraw the permission granted for sub-lease:(v)The licensee and the sub-lessee shall not have any claim for compensation towards any damage or loss sustained on account of non-sanction or withdrawal of permission for sub-lease;(vi)If the original licence is suspended or cancelled for any reasons, the sub-lease shall also stand automatically suspended or cancelled as the case may be;(vii)An application for grant of permission for sub-lease shall be made in Form D3-(SL) and shall be accompanied by:-(a)Sub-lease deed between the licensee and the proposed sub-lessee on a non-judicial stamp paper of the requisite value as per the provisions of the Indian Stamp Act, 1899, which shall be registered within 15 days from the date of grant of permission for sub-lease.(b)Memorandum of Articles of Association/partnership deed. Declaration of sole proprietorship, as the case may be, of the licensee and the sub-lessee.(c)Lists of directors / Partners as the case may be, of both licensee and sub-lessee.(d)Undertaking in Form D3-(SLU) on non-judicial stamp paper worth Rs.100/'- duly signed by the licensee and sub-lessee.(e)Original Challan as proof of having paid 10% (Ten percent) of annual Licence fee of the distillery towards sub-lease fee and fifteen percent of the annual licence fee as security deposit in the shape of Fixed Deposit Receipt or Bank Guarantee issued by a Scheduled Bank situated in Andhra Pradesh in the name of the Commissioner.(viii)The sub-lease granted under sub-rule (1) is not transferable;(ix)The licensee and sub-lessee shall be jointly and severally responsible for all the acts of omissions and commissions of the sub-lessee;(x)The Sub-lessee shall be responsible for payment of all duties, taxes and fees etc., payable to the Government pertaining to the period of sub-lease In case the sub-lease fails the same shall be recovered from the licensee.(2)The security deposit as contemplated under sub-rule (1) (i) (b) shall be valid for the lease period or till the dues are paid to the Government whichever is later.(3)All the outstanding duties, taxed, fees or any other dues payable to the Government shall be recovered from the security deposit and the balances if any shall be recovered from the sub-lessee and licensee as if they were arrears of land revenue.(4)The fixed deposit Receipt or Bank Guarantee produced as security deposit shall be returned to the licensee after the clearance of all the dues to the Government by the sub-lessee and licensee.
