Section 5 in Andhra Pradesh Distillery (Manufacture of Spirits) Rules, 2006
5.
(1)No licence for manufacture of spirits or malt spirits for potable purpose shall be granted unless the same is notified and sanctioned under sub rule (1) and (2) of rule 4 of these rules.(2)Procedure for obtaining Sanction of the Government:(a)On the notification issued by the Government under rule 4(1) and (2), any person intending to construct and work such distillery, may apply in Form D-l(P) along with his scheme to the Government through the Commissioner.(b)No application mentioned in Clause (a) above shall be entertained unless a non-refundable and non-adjustable fee of Rs.20.00 Lakhs is paid into Government treasury and the challan in original in support of such payment is produced along with the application.(c)When the Government are satisfied of the proposed scheme, they may accord the sanction and communicate it in the form of a Letter of Intent in Form D1-(SP). This Letter of Intent shall be valid for a period of two years from the date of issue.(d)It shall be lawful for the Government to accept or reject without assigning any reason any application made for grant of Letter of Intent in pursuance of the notification under rule 4 (1) and (2) of these rules.(e)The holder of Letter of Intent shall obtain a licence in Form D2-(PM) or D2-(PG) or D2-(PMGO) or D2-(MS) as the case may be from the Commissioner of Prohibition and Excise within six months from the date of issue of Letter of Intent.(f)If the holder of the Letter of Intent fails to obtain a licence within a period of Six months from the date of issue of Letter of Intent, he ceases to have any right on the Letter of Intent.(g)If the holder of the Letter of Intent and licence fails to commence production within two years from the date of issue of the Letter of Intent, he forfeits his right over Letter of Intent and on the licence.(h)The Letter of Intent communicated under clause (c) shall not confer any right or privilege for grant of a licence and is liable to be revoked or withdrawn by the Government at any time without giving any notice to its holder, if the Government so desire.(i)No compensation for damage or loss shall be payable when a Letter of Intent is rejected under clause (d) or revoked or withdrawn under clause (h).
