If the person who received the permit does not start the project implementation as per the agreement or if he does anything contrary to this Act or the rules made under it or the agreement, the Government of Nepal may cancel the permit given to him by giving a notice to the person who received the permit.
(2) If the permit is canceled according to sub-section (1), the agreement made with the person who received the permit shall be deemed to be automatically cancelled.
(3) If the permit is canceled according to this section, the person who has received the permit shall not be entitled to make any kind of claim with the Government of Nepal.