No person shall have in his possession any quantity of sandalwood in excess of ten kilograms, except under a licence granted by the Divisional Forest Officer in that behalf, and except such sandalwood as is marked by a forest officer in such manner as may be prescribed:
Provided that the Divisional Forest Officer may, by order, refuse to grant or renew licence to any applicant or licensee in respect of whom he is satisfied that by reason of his conviction of an offence under this Act or the rules made thereunder, or the previous cancellation or suspension of any licence granted thereunder, or the contravention of any of the requirements as to the possession of sandalwood, or for any other ground that may be prescribed, he is not a fit person to whom a licence may be granted or renewed under this section, and every such order shall be communicated as soon as may be, to the applicant or the licensee, as the case may be.