Companies Act 2013 (Section wise fines & penalties)

SL No. Section Matters Fines/penalties
1 Section 4(5) Reservation of Name – After reservation of name , if information given is not correct then: if the company has not been incorporated, the reserved name shall be cancelled and the person making application under sub-section (4) 1 lakh rupees; – Company
2 8 If a company makes any default in complying with any of the requirements laid down in this section, the company shall, without prejudice to any other action under the provisions of this section, Shall be punishable with fine which shall not be less than ten lakh rupees but which may extend to one crore rupees and the directors and every officer of the company who is in default shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to twenty-five lakh rupees
3 15 Alteration of memorandum and articles to be noted in every copy – If alteration made in the memorandum or articles of a company is not noted in every copy of the memorandum or articles 1 thousand rupees for every copy of the memorandum or articles issued
4 16 Rectification of name of company – If a Company makes any default in registration of name as in the opinion of Central Government the name for registration is identical to the name of company already registered. Company – One thousand rupees for every day during which the default continues.

Officer: 5 thousand rupees but which may extend to 1 lakh rupees.

5 17 If on request of member , company has not provided them a copy of of memorandum, articles, etc., to be given to members One thousand rupees for each day during which such default continues or one lakh rupees, Whichever is less.
6 26 If a public company defaults in the provisions of issue of prospectus Company: 50 thousand rupees but which may extend to 3 lakh rupees.

Officer: Every person who is knowingly a party to the issue of such prospectus shall be punishable with Imprisonment: 3 Years. or Fine: Not be less than 50 thousand rupees but which may extend to 3 lakh rupees, or both.

7 39 If the company has not returned the application money received. Or If a company having a share capital has not filed return of allotment with Registrar. One thousand rupees for each day during which such default continues or one lakh rupees, whichever is less.
8 40 If a company is making public offer and it fails to inform to the one or more stock exchange and also fails to follow the provisions there under. Company: Not be less than 5 lakh rupees but which may extend to 50 lakh rupees

Officer : Imprisonment for a term which may extend to 1 year or Fine not be less than 50 thousand rupees but which may extend to 3 lakh rupees, or both.

9 42 If the Company or director or promoter has not followed the provisions of Private Placement. The amount involved in the offer or invitation or 2 crore rupees, whichever is higher.
10 48 Where any default is made in complying with the provisions of this section Provision of fine and or imprisonment completely omitted Thus only residual penalty can be imposed
11 53 If Company issues Shares at discount Company: Fine not be less than 1 lakh rupees but which may extend to 5 lakh rupees

Officer: Imprisonment: for a term which may extend to 6 months or Fine not be less than 1 lakh rupees but which may extend to 5 lakh rupees, or both.

12 56 Where any default is made in complying with the provisions of sub-sections (1) to (5), the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees
13 57 If a person deceitfully personates as owner of any security or interest etc. in a Company. Officer Imprisonment: Not be less than 1 year but which may extend to 3 years Fine: Not be less than 1 lakh rupees but which may extend to 5 lakh Rupees.
14 59 If a Company fails to comply with the orders of tribunal regarding rectification of registers of members. Provision of fine and or imprisonment completely omitted Thus only residual penalty can be imposed
15 60 If a company advertises it’s authorized capital on Companies letter heads, business heads Company : 10 thousand rupees

Officer : 5 thousand rupees.

16 64 If a Company fails to send notice to Registrar after alteration of Share Capital. company fails to comply with the provisions of sub-section (1), such company and every officer who is in default shall be liable to a penalty of five hundred rupees for each day during which such default continues, subject to a maximum of five lakh rupees in case of a company and one lakh rupees in case of an officer who is in default.
17 66  If a company fails to comply with the provisions of sub-section (4) Provision of fine and or imprisonment completely omitted Thus only residual penalty can be imposed
18 67 Restrictions on Purchase by Company or Giving of Loans by it for Purchase of its Shares Max-3 Years
19 68 If a company makes any default in complying with the provisions of this section or any regulation made by the Securities and Exchange Board, for the purposes of clause (f) of sub-section (2), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees and every officer of the company who is in default shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees
20 71 default is made in complying with the order of the Tribunal under this section Provision of fine and or imprisonment completely omitted Thus only residual penalty can be imposed
21 74  If a company fails to repay the deposit or part thereof or any interest thereon within the time specified in sub-section (1) or such further time as may be allowed by the Tribunal under sub-section (2), the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fine which shall not be less than one crore rupees but which may extend to ten crore rupees and every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or with both.
22 76A Punishment for Contravention of Section 73 or Section 76. every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years and with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees
23 86 If any company is in default in complying with any of the provisions of this Chapter, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees.
24 88 Failure to maintain a register of members/debenture-holders/security holders Company Every officer in default Min: INR 50 thousand Max: INR 3 Lakhs Continuing failure- INR 1 thousand for every day of default
25 89(5) Failure to make a declaration in respect of a beneficial interest in any share. Failure to file return pertaining to the declaration with the registrar. Person Company and Every officer in default. Max: INR 50 thousand Continuing failure- INR 1 thousand for every day of default Min: INR 500 Max: INR 1 thousand Continuing failure- INR 1 thousand for every day of default.
26 90(10)  If any person fails to make a declaration as required under sub-section (1) shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with a further penalty of one thousand rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees.
27 90(11) If a company, required to maintain register under sub-section (2) and file the information under sub-section (4) or required to take necessary steps under sub-section (4A), fails to do so or denies inspection as provided therein the company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day, after the first during which such failure continues, subject to a maximum of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of twenty-five thousand rupees and in case of continuing failure, with a further penalty of two hundred rupees for each day, after the first during which such failure continues, subject to a maximum of one lakh rupees.
22 91 Closure of register of members or debenture holders or other security holders without notice/shorter notice/ in excess of limits prescribed – Company and Every officer in default 5 thousand for every day of default Max: INR 1 Lakh
23 92 Failure to file annual return – Company Every officer in default Company : Min: INR 50 thousand Max: INR 5 Lakhs

Officer: Min: INR 50 thousand Max: INR 5 Lakhs

24 94 Refusal of Inspection or making a copy/extract – Company and Every officer in default. one thousand for every day of default Max: one Lakhs
25 99 Default in complying with Sec 96 – AGM Sec 97 – Power of the tribunal to call AGM. Sec 98 – Power of a tribunal to call meetings of members OR Orders of Tribunal. Company and every officer in default Max: One Lakh Further Five thousand for every day of default

 

26 102 Failure to comply with provisions related to statement to be annexed to notice calling a meeting – Every promoter/director/manager/KMP in default 50 thousand or 5 times the benefit accruing to the persons mentioned in column (3) or any of their relatives Whichever is higher
27 105 Failure to mention members eligibility to appoint a proxy. Wilfully/knowingly issues the invitation to appoint a proxy

 

Every officer in default Min: five thousand Max: One Lakh
28 111 Failure to circulate members’ resolution

 

Company and every officer in default twenty five thousand
29 117 Failure to file the resolution and agreement. Company Every officer in default(including liquidator) – 25 Lakhs Min: 1 lakh Max: 5 Lakhs
30 118 Failure to maintain the minutes of proceedings of the general meeting, meeting of Board of Directors and other meeting and resolutions passed by postal ballot. Guilty of tampering with the minutes of the proceedings of the meeting. Company Every officer in default Person – 25 thousand 5 thousand Min: 25 thousand Max: 1 Lakh
31 119 Refusal to inspect or copies not furnished within the specified time Company 25 thousand

Officer 5 thousand

32 121 Failure to file the report on AGM before the expiry of a specific period. Company Every officer in default – Min: 1 lakh Max: 5 Lakhs Min: INR 25 thousand Max: 1 Lakh
33 124 Default in complying with provisions related to Unpaid Dividend Account Company Every officer in default – Min: 5 lakhs Max: 25 Lakhs Min: 1 Lakh Max: 5 Lakhs
34 127 Punishment for failure to distribute dividends. Every director in default Company – one thousand for every day of default & Simple Interest @ 18% p.a during the period for default continues
35 128 Failure to comply with the provision relating to maintenance of books of accounts etc by the company. Managing director -Whole time director in charge of finance -Chief Financial Officer or such other person – Min: 50 thousand Max: 5 Lakh
36 129 Failure to comply with provisions relating to proper disclosure of financial statements Managing director -Whole time director in charge of finance -Chief Financial Officer or such other person in charge(as appointed by the board In the absence of any of the officers mentioned all the directors. – Min: 50 thousand Max: 5 Lakh
37 134 Contravention of the provisions relating to Financial Statements, Boards Report Etc Company Every officer in default – Min: 50 thousand Max: 25 Lakhs Min: 50 thousand Max: 5 Lakh
38 136 Denial of the right of the member to inspect copies of the audited financial statements Company Every officer in default – INR 25 thousand INR 5 thousand
39  137 Failure to file the copy of financial statements with the registrar. Company Managing Director and Chief Financial officer In their absence any director charged by the board with the responsibility In the absence of such director all directors one thousand for every day of default Max: 10 Lakhs Min: 1 Lakh Max: 5 Lakh
40 140 Failure of the auditor to file the notice on resignation, with the company and registrar & also the C&AG in case of government companies. The right of representation abused/auditor has acted in a fraudulent manner Auditor – Min: 50 thousand Max: 5 Lakhs Min: Amount involved in the fraud Max:3 times the amount involved
41 143 Failure of the auditor to report fraud by employees against the company Auditor Cost Accountant Company Secretary – Min: 1 Lakh Max: 25 Lakhs
42 147 Contravention of Sec 139 to 146(aspects related to audit and auditors) Contravention of Sec 139/143/144/145 Contravention of provisions knowingly/willfully with the intention to deceive the company or its shareholders or creditors or tax authorities Company Every officer in default Auditor Auditor – Min: 25 thousand Max: 5 Lakhs Min: 10 thousand Max: 1 Lakh OR Min: 25 thousand Max: 5 Lakhs Min: 1 lakh Max: 25 Lakhs
43 148 Default in complying with the orders of the Central Government pertaining to cost audit Company Every officer in default Cost Auditor – Min: 25 thousand Max: 5 Lakhs Min: 10 thousand Max: 1 Lakh OR Min: 25 thousand Max: 5 Lakhs
44  157 Failure by the company to inform DIN to Registrar. Company Every officer in default – Min: 25 thousand Max: 1 Lakh Min: 25 thousand Max: 1 Lakh
45 159 Contravention of: Sec 152- appointment of directors, Sec 155-Prohibition to obtain more than one DIN and Sec 156-Director to intimate DIN Individual/Director – 50 thousand OR Further, a fine of 500 for every day of default.
46 165 Contravention of maximum no. of directorships The person accepting appointment as director – Min: 5 thousand Max: 25 thousand for every day during which the contravention continues
47 166 Contravention of duties of directors. Director – Min: 1 Lakh Max: 5 Lakhs
48 167 Functioning as director after attaining disqualification. Director – Min: 1 Lakh Max: 5 Lakhs
49 172 No specific punishment under chapter XI Company & every officer in default – Min: 50 thousand Max: 5 Lakhs
50 178 Contravention of provisions of Sec 177 related to Audit committee and nomination and remuneration committee and stakeholders relationship committee Company Every officer in default – Min: 1 lakh Max: 5 Lakhs Min: 25 thousand Max: 1 Lakh
51 182 Political contribution made in excess of the limits Company Every officer in default – 5 times the amount contributed 5 times the amount contributed
52 184 Failure to disclose interest held by directors in any company /contract /arrangement Director – Min: 50 thousand Max: 1 Lakh
53 185 Loan to directors/any other person in whom the director is interested/give a guarantee in connection with the loan taken by the director or such other person in contravention of the provisions of this section Company Director/any other person – Min: 5 Lakh Max: 25 Lakh Min: 5 Lakh Max: 25 Lakh OR
54 186 Contravention of provisions pertaining to loan and investment by the company Company Every officer in default Min: 25 thousand Max: 5 Lakhs Min: 25 thousand Max: 1 Lakh
55 187 Contravention by the company regarding investments of the company to be held in its own name. Company Every officer in default Min: 25 thousand Max: 25 Lakhs Min: 25 thousand Max 1 Lakh
56 188 Contract entered into/ authorised in contravention with the provisions outlined under the section-Related party transactions. Listed Company: Violation by Director/any other person Other Company: Violation by Director/any other person

Min: 25 thousand Max: 5 Lakhs

OR

Min: 25 thousand Max: 5 Lakh

57 189 Failure to disclose the interest of the director in any contract/arrangement  Director – Rs. 25 thousand
58 190 Contravention of Sec. 190 (Contract of employment with managing of whole Time directors Company – Penalty of Rs. 25,000

Officer in default Penalty of Rs. 5,000 for each default.

59 191 Contravention of Sec. 191 (Payment to directors for loss of Office, etc. in connection with transfer of under- taking, Property or shares) Person liable for contravention Punishment for Contravention Director concerned – penalty of Rs. 1 lakh

 

60 197 If any person makes any default in complying with the provisions of this section shall be liable to a penalty of one lakh rupees and where any default has been made by a company, the company shall be liable to a penalty of five lakh rupees
61 203 If any company makes any default in complying with the provisions of this section such company shall be liable to a penalty of five lakh rupees and every director and key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees and where the default is a continuing one, with a further penalty of one thousand rupees for each day after the first during which such default continues but not exceeding five lakh rupees
62 204 If a company or any officer of the company or the company secretary in practice, contravenes the provisions of this section the company, every officer of the company or the company secretary in practice, who is in default, shall be liable to a penalty of two lakh rupees
63 206 If a company fails to furnish any information or explanation or produce any document required under this section the company and every officer of the company, who is in default shall be punishable with a fine which may extend to one lakh rupees and in the case of a continuing failure, with an additional fine which may extend to five hundred rupees for every day after the first during which the failure continues
64 207 If a director or an officer of the company has been convicted of an offence under this section the director or the officer shall, on and from the date on which he is so convicted, be deemed to have vacated his office as such and on such vacation of office, shall be disqualified from holding an office in any company.
68 217(6)  If any director or officer of the company disobeys the direction issued by the Registrar or the inspector under this section he director or the officer shall be punishable with imprisonment which may extend to one year and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees.
69 217(8) If any person fails without reasonable cause or refuses—

(a) to produce to an inspector or any person authorised by him in this behalf any book or paper which is his duty under sub-section (1) or sub-section (2) to produce;

(b) to furnish any information which is his duty under sub-section (2)to furnish;

(c) to appear before the inspector personally when required to do so under subsection (4) or to answer any question which is put to him by the inspector in pursuance of that sub-section; or

(d) to sign the notes of any examination referred to in sub-section (7),

shall be punishable with imprisonment for a term which may extend to six months and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, and also with a further fine which may extend to two thousand rupees for every day after the first during which the failure or refusal continues.
70 221 In case of any removal, transfer or disposal of funds, assets, or properties of the company in contravention of the order of the Tribunal under sub-section (1)  the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.
71 222 Where securities in any company are issued or transferred or acted upon in contravention of an order of the Tribunal under sub-section (1) the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both.
72 232 If a company fails to comply with sub-section (5) the company and every officer of the company who is in default shall be liable to a penalty of twenty thousand rupees, and where the failure is a continuing one, with a further penalty of one thousand rupees for each day after the first during which such failure continues, subject to a maximum of three lakh rupees.
73 242 If a company contravenes the provisions of sub-section (5) the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees
74 243 Any person who knowingly acts as a managing director or other director or manager of a company in contravention of clause (b) of sub-section (1) or sub-section (1A)  and every other director of the company who is knowingly a party to such contravention, shall be punishable Omitted with fine which may extend to five lakh rupees.
75 245 Any person who disobey the order passed by the Tribunal against the application made by any member, depositor or depositors or any class of them.  Period of Imprisonment Max-03Years
76 247 If a valuer contravenes the provisions of this section or the rules made thereunder the valuer shall be liable to a penalty of fifty thousand rupees
77 274 Directions for Filing Statement of Affairs-

If any Company fails to obey the directions issued by Tribunal then in that case officer who is in default shall be liable

Period of Imprisonment Max-06Months
78 302 If the Company Liquidator makes a default in forwarding a copy of the order within the period specified in sub-section (3) Provision of fine and or imprisonment completely omitted Thus only residual penalty can be imposed
79 336 Offences Penalty by Officers of Companies in Liquidation. Min-03Years

Max-05 Years

80 337 Frauds by Officers;

Fraud done by officers with creditors of the Company

Min-01Year

Max-03Years

81 338 Liability Where Proper Accounts not Kept.

Crux of the Section;

Where a company is being wound up, if it is shown that proper books of account were not kept by the company throughout the period of two years immediately preceding the commencement of the winding up, or the period between the incorporation of the company and the commencement of the winding up, whichever is shorter.

Min-01Year

Max-03Years

82 342  If a person fails or neglects to give assistance required by sub-section (5), Provision of fine and or imprisonment completely omitted Thus only residual penalty can be imposed
83 347 If any person acts in contravention of any rule framed or an order made under sub-section (3) shall be punishable with fine which may extend to fifty thousand rupees
84 348 Where a Company Liquidator, who is an insolvency professional registered under the Insolvency and Bankruptcy Code, 2016 is in default in complying with the provisions of this section such default shall be deemed to be a contravention of the provisions of the said Code, and the rules and regulations made thereunder for the purposes of proceedings under Chapter VI of Part IV of that Code
85 356 Non compliance by company liquidator in filing with Roc order of NCLT declaring dissolution void Provision of fine and or imprisonment completely omitted Thus only residual penalty can be imposed
86  378Z Penalty for contravention Max-06Months
87 392 Without prejudice to the provisions of section 391, if a foreign company contravenes the provisions of this Chapter, the foreign company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees and in the case of a continuing offence, with an additional fine which may extend to fifty thousand rupees for every day after the first during which the contravention continues and every officer of the foreign company who is in default shall be punishable with fine which shall not be less than twentyfive thousand rupees but which may extend to five lakh rupees
88 405  If any company fails to comply with an order made under sub-section (1) or sub-section (3), or furnishes any information or statistics which is incorrect or incomplete in any material respect the company and every officer of the company who is in default shall be liable to a penalty of twenty thousand rupees and in case of continuing failure, with a further penalty of one thousand rupees for each day after the first during which such failure continues, subject to a maximum of three lakh rupees.
89 441 If any officer or other employee of the company who fails to comply with any order made by the Tribunal or the Regional Director or any officer authorised by the Central Government under sub-section (4) the maximum amount of fine for the offence proposed to be compounded under this section shall be twice the amount provided in the corresponding section in which punishment for such offence is provided
90 446 Notwithstanding anything contained in this Act, if penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may be shall be liable to a penalty which shall not be more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be
91  449 Punishment for False Evidence.

Any person who wilfully submit any false evidence.

Min-03 Years

Max- 07 Years

92 450 If a company or any officer of a company or any other person contravenes any of the provisions of this Act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act  the company and every officer of the company who is in default or such other person shall be 1[liable to a penalty of ten thousand rupees, and in case of continuing contravention, with a further penalty of one thousand rupees for each day after the first during which the contravention continues, subject to a maximum of two lakh rupees in case of a company and fifty thousand rupees in case of an officer who is in default or any other person
93  452 Punishment for Wrongful Withholding of Property. Provision of fine and or imprisonment completely omitted Thus only residual penalty can be imposed
94 454 Adjudication of Penalties- Max-06Months

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