Section 16 in The Warehousing (Development And Regulation) Registration Of Warehouses Rules, 2010
16. Suspension and Cancellation of Registration. - (1) Every registration that has been granted under Section 4 of the Act shall be liable to be suspended or cancelled or revoked temporarily or permanently by the Authority if-
(i)the warehouseman files an application to declare him an insolvent;(ii)the warehouseman has lost control of the warehouse or has ceased to conduct the business of warehousing;(iii)the warehouseman has assigned the registration of the warehouse to any third party;(iv)the warehouseman commits any fraudulent act;(v)the warehouseman has in any other manner become incompetent to conduct the business of warehousing;(vi)the warehouseman has not permitted regular audit and unannounced inspection by the Authority or any of its agencies; and(vii)the warehouseman fails to comply with any of the conditions of registration or any provision of the Act or rules and regulations made thereunder.(2)Before passing an order of suspension or cancellation or revocation of registration, the Authority shall issue a show-cause notice to warehouseman on which it is proposed to suspend, cancel or revoke the registration and call upon him to show-cause as to why the proposed action should not be taken.(3)The warehouseman shall respond to the suspension notice issued under sub-rule (2) in writing to the Authority, within 15 days of receipt of the notice, failing which the matter will be decided based on the available material.(4)After considering the submissions made by the warehouseman, if any, the Authority shall pass such orders as it may deem fit.
