Sugar factory to be a licensee

(1) No sugar factory or khandsari unit shall have on its premises or purchase sugarcane for crushing or manufacturing purposes unless such factory or unit is a licensee under the provisions of this Act.

(2) Where a factory owner crushes sugarcane or causes it to be crushed without a licence, he shall be liable to be prosecuted in accordance with the provisions of this Act.

Provided that, where a factory owner produces his own sugarcane and consumes it for crushing purposes without a licence, he shall be deemed to be violating the provisions of this Act.