Section 4(2) in The U.P. Licences for the Possession of Denatured Spirit and Specially Denatured Spirit Rules, 1976
(2)The licensee shall, if required by the Excise Commissioner before granting the licence, or at any time during the currency of his licence deposit with the Collector in cash or in Government Promissory Notes or National Savings Certificates, such amount as may be prescribed by the Excise Commissioner as security for the due observance of the terms and conditions of the licences, case of non-observance of the terms and conditions of the licence, the security so deposited may be forfeited to Government and licence cancelled in addition to other penalties that may be provided under the law after giving opportunity to the licensee to explain.
