(1) If the permit holder does not renew the permit within the period specified in sub-section (2) and sub-section (3) of section 9, such permit shall be cancelled.
(2) If the licensee does or causes any of the following acts, the authority may cancel the license obtained by him:-
(a) If the industry is not established and operated within the period specified in the agreement,
(b) If the obligations under section 12 are not fulfilled,
(c) in case of selling its products in the domestic market in excess of the quantity mentioned in clause 13,
(d) If the industry misuses the concession,
(e) If it is proved that concessions have been obtained by giving false information. (3) Before canceling the license in accordance with sub-section (2), the authority shall give the relevant licensee a reasonable opportunity to submit his explanation.
(4) If the license is canceled according to sub-section (1) or (2), the contract with the licensee shall be deemed to be automatically cancelled.
(5) If the license is revoked according to sub-section (1) or (2), the licensee shall not be entitled to claim any kind of compensation for the investment made in the industry and shall not be able to receive any concessions and facilities as per this Act from the date of cancellation of the license.
(6) If the license is revoked according to sub-section (1) or (2), the licensee shall manage his immovable property in the special economic zone within one year from the date of cancellation of the license.
(7) If the licensee fails to manage his immovable property within the period as per sub-section (6), such property shall belong to the Government of Nepal.
(8) Before canceling the license according to sub-section (2), the authority may itself or through any subordinate officer understand or investigate the necessary matters.
(9) The licensee who is not satisfied with the cancellation of the license in accordance with sub-section (2) may appeal to the concerned High Court within thirty-five days.