The Central Motor Vehicles Rules,1989
Section 69. Power of registering authority to suspend or cancel the letter of authority or forfeit security deposit
(1) If the registering authority is satisfied after giving the holder of a letter of authority an opportunity of being heard, that he has
(a) failed to maintain the equipment, machinery and apparatus referred to in subclause (e) of sub-rule (3) of rule 63 in good conditioner
(b) failed to comply with the other requirements laid down in sub-rule (3) of rule 63; or
(c) failed to observe correct standards of testing before granting or renewing certificates of fitness as noticed at the time of test-checking referred to in rule 67 or the frequency of accidents involving transport vehicles covered by certificates of fitness granted or renewed by the authorised testing station attributable to any mechanical defect of the vehicle, it may
(i) suspend the letter of authority for a specified period; or
(ii) cancel the letter of authority; or
(iii) order forfeiture of the security deposit furnished by the authorised testing station.
(2) Where the letter of authority is suspended or cancelled under sub-ru le (1), the holder of the letter of authority shall surrender the same to the registering authority forthwith.
(3) Where the security deposit is forfeited under sub-rule (1), the holder of the letter within thirty days of the receipt of the order of forfeiture, remit to the registering authority the amount ordered to be forfeited so that the requirement of sub-rule (2) of rule 63 in relation to deposit of security is complied with.