Punishment for surreptitious sale of supplied material by contractor

Whoever, being a contractor under a works contract sells or otherwise transfers cement, iron, or any other material supplied by the works department for the work as per specifications, instead of properly utilizing the same in the work or instead of returning the unused or excess material back to the works department, shall be punished with imprisonment of either description which may extend to three years or with fine or both. (1) The fee for licence shall be Rs. 500. (2) The fee shall be credited in the treasury under the head "034 urban development-C-other receipts-4-Licence fees for Colonization". (3) The fee so credited shall be refunded after deducting a sum of Rs. 100 where the application for licence is rejected.