Section 14(2)(c) in A.P. Wood Based Industries (Establishment And Regulation) Rules, 2018
(c)All penalties levied shall be paid by the licensee within fifteen days from the date of receipt of the order or the notice of demand for payment. In case of failure to pay the penalties in time, the same will be adjusted from the security deposit, which shall be replenished immediately so as to keep it always full and complete. Tine licence shall be deemed to be inoperative, until such time, the licensee replenishes the adjustments in the security deposit.