Punishment of contractor for violation of contract etc.

Whoever, being a contractor of a works contract entered into with a works department intentionally, knowingly or for corrupt motive executes the work in material violation of the terms of the contract or in flagrant disregard of the standards, specifications, orders or directions given by the works department or its officers so as to adversely affect the quality, workmanship, strength or life of the work or part of it, shall be punished with imprisonment of either description which may extend to three years or with fine or both. The Collector may get such inquiry made as he deems fit. In particular, he should satisfy himself on the following accounts. Firstly, the application should be bona fide. Secondly, the applicant's financial status should be adequate and he should be solvent to the extent of at least ten per cent of the total cost of development. Thirdly, the applicant has not been convicted for any offence involving moral turpitude.