Penalty for contravention of the provisions of the Act and Rules and Order
Section 15 of the Act provides that, whoever fails to comply with or contravenes any of the provisions of this Act, or the rules made or orders or directions issued thereunder, shall in respect of each such failure or contravention, be punishable with imprisonment for a term which may extend to five years or with fine which may extend to one lakh rupees, or with both, and in case the failure or contravention continues, with additional fine which may extend to five thousand rupees for every day during which such failure or contravention continues after the conviction for the first such failure or contravention.
If the failure or contravention referred to in sub-section (1) continues beyond a period of one year after the date of conviction, the offender shall be punishable with imprisonment for a term which may extend to seven years.
Therefore, any person who fails to comply with or contravenes any of the provisions of this Act or the rules made or orders or directions issued under the Act or rules, then for each failure or contravention, he shall be punishable-
1. with imprisonment for a term which may extend to five years, or
2. with fine which may extend to one lakh rupees, or
3. with both.
In case of failure or contravention after the first failure or contravention an additional fine which may extend to five thousand rupees for every day can be imposed for a period during which failure or contravention continues.
In case failure or contravention continues beyond a period of one year after contravention, the offender shall be punishable with imprisonment for a term which may extend to seven years.
Where any offence has been committed by any company under this Act, every person, who at the time the offence was committed was directly incharge of and was responsible, to company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to punishment [Section 16(1)]. However, if such person proves that the offence was committed without his knowledge he shall not be liable. [Proviso to Section 16(1)]
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