Provisions relating to operations of companies holding a valid license

under this Act in any State or Union Territory:-

1. (1) If a State Government is of the opinion that the license is operating in its State in violation of the provisions of the Act and these rules, or in violation of the provisions of its local statutes, it may immediately bring the violation to the notice of the Licensing Authority of the State of Nagaland along with the details of such violations or irregularities noticed.
2. (2) The licensing Authority of the State of Nagaland shall send a suitable response on the issues raised by the State, Government under sub-rule (1), and take steps to resolve the issues raised. 12. (1) In case any person or entity or license holder is found to be engaging in ‘games of chance' or gambling activities, he or such entity shall be liableto a fine of Rs. 20 lakhs in the first instance and if not remedied thereafter, to a simple imprisonment of 6 months. It is clarified that playing of ‘games of skill' for stakes as per the license would not amount to gambling.
3. (2) Incase any party is found to have made a deliberate mis-declaration to the Licensing Authority in order to obtain a license, the person(s) in charge of the said company or the individual concerned shall be liable to be convicted and sentenced fora period of upto six(6) months or fine of upto Rs.20 lakhs.
4. (3) Any person or entity found guilty of violation of the above provisions shall not be eligible for renewal of license and shall be further liable for immediate termination of the existing license.
5. (4) Alloffences under this Act shall constitute an offence as per the provisions of the Code of Criminal Procedure 1973 (As amended).