(1) If there is a complaint that the lessee has not been able to operate the work according to the lease, has done any work that has a significant adverse effect on the environment, or has not followed the things required to be followed according to the Act or this regulation, or if it is found from any other source that the lessor has acted against the prohibited work or the work plan, the director The employee shall be assigned to the lessor or his representative to conduct an on-site inspection and submit a report.
(2) If it appears from the on-site inspection report submitted as per sub-rule (1) or from the evaluation report submitted as per sub-rule (2) of rule 52, that the lessor has committed prohibited acts, the director shall give the concerned lessor an opportunity to submit a clarification within a maximum period of thirty-five days.
(3) If the clarification submitted by the lessee as per sub-rule (2) is not satisfactory, the director may cancel the lease and take back the concession forest within forty-five days from the date of submission of such clarification.
(4) According to sub-rule (3), in case of a decision to cancel the lease and take back the recognized forest, in the case of the forest produce grown by the lessee in such recognized forest, the director shall ask the district forest office to evaluate the said forest produce and give the amount as per schedule-2 to the lessee as compensation.
(5) If the lessee does not agree to the assessment of forest produce made as per sub-rule (4), the said dispute shall be settled in accordance with the Arbitration Act, 2055.
(6) When paying the compensation determined according to sub-rule (4) or (5), the lessee shall deduct the amount of the damage caused by the lessee against the conditions mentioned in the lease and give the remaining amount only to the lessee.