Section 3(9) in The M.P. Van Upaj other than Timber (Vyapar Viniyaman) Niyam, 1969
(9)(i)The agent so appointed for a particular unit shall, before signing the agreement, deposit, as security for the proper execution and performance of the agency in accordance with the terms and conditions of the agreement and the provisions of the Act and these rules, a minimum sum to be specified in the agency notice. In the event of the agent being not able to deposit the aforesaid amount of security, any other person may be allowed to deposit the said amount on his behalf, subject however, to the condition that the amount so deposited as security by him shall, for the purposes of these rules and the agreement, be subject to the same terms and condition as if such amount is deposited by the agent himself.(ii)This security deposit will be in the shape of revenue deposit in the name of Divisional Forest Officer concerned either in cash or in the form of promissory notes which shall for the purposes be valued at 5 per cent below the market value or Guarantee of Scheduled Banks offered in terms of Finance Department, Government of Madhya Pradesh Memo No. 2171-545-IV-R-V, dated the 6th September, 1962, or Post Office Cash Certificate, National Saving Certificate, 10-year Treasury Saving Deposit Certificate, 12-year National Defence Certificate at surrender value, transferred to the Divisional Forest Officer concerned with Head Post Master's sanction.(iii)The security deposit shall either wholly or in part, as the case may he, adjusted by the Divisional Forest Officer towards the recovery, if any of the penalty for short collection of specified forest produce, compensation damages and any other dues which may recoverable under the provision of the agreement, these rules and the Act, and if ordered by the Divisional Forest Officer in writing, all such deductions shall have to be made good by the agent by deposit of an equivalent amount within fifteen days of the receipt of the notice to that effect.(iv)If the dues to be recovered exceed the amount of the security deposit the amount in excess shall, unless made good within 15 days from the date of the Divisional Forest Officer's notice to that effect, be recoverable as arrears of land revenue.(v)The security deposit of the balance, as the case may be, shall be refunded to the agent or the person depositing it on behalf of the agent when the Divisional Forest Officer is satisfied that all the obligations and formalities on the part of the agent under the terms of the agreement and the provisions of these rules and the Act have been duly complied with and that no amount is due against him.(vi)In addition to the security deposit mentioned above, the agent shall furnish a certificate of personal solvency or the security bond of an independent surety holding such certificate to the extent as is specified in the agency notice.
