(1) At the time when the Board gives permission to invest in accordance with the Act or thereafter, the investor shall use the project for the purpose for which the facility has been provided in accordance with the Act.
(2) If the facility obtained under that Act is used in such a way that sub-rule (1) is adverse, such facility shall be deemed to be misused.
(3) Bye-laws for facilities to be received by an investor in accordance with the Act If there is a complaint of misuse as per (2) or if the board has reason to believe that such a facility has been misused, the board will form an inquiry committee consisting of representatives of the Government of Nepal and the Federation of Nepalese Chamber of Commerce and Industry under the coordination of an independent expert to ascertain the matter.
(4) The terms of reference (terms of reference) of the committee formed in accordance with sub-rule (3) shall be as determined by the board at the time of formation.
(5) The investigation committee formed according to sub-rule (3) will study the project work at the relevant project site and report to the board after ascertaining whether the facilities received in accordance with the law have been misused or not.
(6) Upon receipt of the report according to sub-rule (5), if it is found that the facilities received in accordance with the Act have been misused from the related project, the related investor will be given a deadline of seven days to submit a clarification regarding the reasons and grounds for not canceling such facilities.
(7) If the explanation is not submitted within the period given in accordance with sub-rule (6) or if the submitted explanation is not reasonable, the board will cancel the facilities given according to the law while issuing the investment permit for such project.
(8) According to sub-rule (7), if the board cancels the facilities given in accordance with the Act, the compensation of the facility to the extent misused shall be paid to the Government of Nepal by the concerned investor.