Section 3(2) in The U.P. Scheduled Commodities (Regulation of Distribution) Order, 1989
(2)Every Authorised Retail Distributor shall deposit by way of security along with an application for authorisation in Form 'A' prescribed in Schedule II to this Order, with the State Government or the District Magistrate a sum of Rs. 250 in respect of each shop. In the case of a shop run by a Co-operative Society the deposit shall be Rs. 50. The sum so deposited or any part thereof may, without prejudice to any other penalty after enquiry and for reasons to be recorded in writing, be forfeited by the State Government 6r the District Magistrate for contravention of the provisions of this Order and the conditions of the authorisation. If as a result of any departmental action the sum deposited or any part thereof is not sufficient, the Authorised Retail Distributor shall forthwith pay to the Government such amount as may be required to make up the prescribed sum to be deposited as security.
