Restrictions on powers of licensing authority
5.(1) The licensing authority shall not grant a licence under this Act, unless it is satisfied that-
(a) the rules made under the Act have been substantially complied with; and
(b) adequate precautions have been taken in the place in respect of which the licence is to be given to provided for the safety of persons attending exhibitions therein.
(2) A condition shall be inserted in every licence that the licensee will not exhibit, or permit to be exhibited, in such place any film other than a film which has been certified as suitable for public exhibition by [the authority] constituted under the Censorship of Films Act, 1963
, and which, when exhibited, displays the prescribed mark of that authority, and has not been altered or tampered with in any way since such mark was affixed thereto.
(3) Subject to the foregoing provisions of this section, and to the control of the [* * *] Government, the licensing authority may grant licences under this Act to such persons as it thinks fit, and on such terms and conditions, and subject to such restrictions as it may determine.