(1) If any licensee is found to have sold the goods or services produced by him in the domestic market of Nepal in excess of the quantity mentioned in sub-section (2) of section 13, the authority shall fine such licensee the amount as mentioned below.
(2) If a licensee does any other work contrary to the agreement entered into with the Authority under Section 11 or this Act or the rules made under this Act, the Authority may issue all or any of the following orders to such licensee considering the nature of the work done by him:-
(a)  Cancellation of license of industry,
(b) Discontinuance of Industry,
(c) Penalty up to fifteen lakh rupees.
(3) The authority may impose a fine of up to twenty five thousand rupees on the permit holder who does not follow the instructions given under sub-section (2) of section 50 or does not submit a report as per section 52.
(4) If a license holder violates the agreement with the authority or acts contrary to this Act or the rules made under this Act, any loss or damage occurs to anyone, if such loss can be recovered, the amount according to the said loss and if the loss cannot be sustained, Manasib Mafiq The authority will collect the amount from the concerned licensee and pay it to the person who has suffered loss.
(5) Before taking action against the license holder in accordance with this section, the authority shall give him a reasonable opportunity to submit an explanation regarding the allegations made against him.
(6) The authority shall recover the amount of fine as per sub-section (1), (2) or (3) or the amount of damages as per sub-section (4) as government debt.