(1) In the following circumstances, Government of Nepal may, on recommendation of the committee, annul the construction entrepreneur license: (a) where the license is obtained on submission of false statements, (b) where false statements and related documents are submitted to Government of Nepal and corporate body with intent to carry out, or cause to be carried out, public construction works, (c) where the entrepreneur is held to have failed to carry out works of standard quality.
(2) Prior to annulling the license pursuant to Sub-section (1), a reasonable opportunity shall be given to the concerned construction entrepreneur to furnish explanation.
(3) The license not renewed within the time limit a referred to in Section 5 shall ipso facto be annulled.
(4) Where the license is annulled pursuant to Sub-section (1) or (3), information thereof shall be given to the office registering the firm or company concerned.