Srihari Kota
Companies Act 2013 has brought out vigorous punishments not only to public companies but also to private companies and to its directors to our surprise.
Table given below contains all the applicable penalties or punishments applicable to private companies and to its directors, if any of the provisions of the Act are contravened.
Penalties if the provisions of Companies Act 2013 are contravened
Sec-tion |
Section |
Applica-bility |
Penalty |
ForCompany |
ForDirector |
|
No |
Name |
for Private Company |
Heading |
Penalty |
Penalty |
Imprison-ment |
Sec 8 |
Formation of Companies with Charitable Objects |
Yes |
Default in complying with any of the requirements laid down in this section Concerning formation of Companies with charitable objects |
Rs. 10 Lakhs – Rs.1 Crore |
Rs.25,000 – Rs.25 Lakhs |
Maximum 3 years |
Affairs of a company registered under Sec 8 were conducted fraudulently |
Any person found to be guilty of fraud – Imprisonment 6 Months(Min) – 10 Years(Max), Fine – 1 time(Min) to 3 times(Max) the amount involve in the fraud |
|||||
Sec 10 |
Effect of Memorandum & Articles |
Yes |
Defaulting in complying with any requirement under this section |
Rs.10 Lakhs – Rs.1 Crore |
||
Sec 12 |
Registered office of the company |
Yes |
Non Affixing of Name, CIN, Fax, email , address etc of the registered office on all correspondances |
Rs.1,000/- per day not exceeding Rs. 1 Lakh |
Rs.1,000/- per day not exceeding Rs. 1 Lakh |
|
Sec 15 |
Alteration of memorandum & articles to be noted in every copy |
Yes |
Default in complying the provisions of this section |
Rs.1,000/- for every copy of memorandum & articles |
Rs.1,000/- for every copy of memorandum & articles |
|
Sec 16 |
Rectification of name of company |
Yes |
Default in complying the provisions of this section |
Rs.1,000/- for every day of default |
Rs.5,000 – Rs.1 Lakh |
|
Sec 17 |
Copies of memorandum, articles etc to be given to members |
Yes |
Default in complying the provisions of this section |
Rs.1,000/- for every day of default or Rs. 1 Lakh whichever is less |
Rs.1,000/- for every day of default or Rs. 1 Lakh whichever is less |
|
Sec 19 |
subsidiary company not to hold shares in its holding company |
Yes |
Default in complying the provisions of this section |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 20 |
Service of documents |
Yes |
Non Communication of Mode of service of Documents |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 21 |
Authentication of documents, proceeding & Contracts |
Yes |
Non signing by any KMP or an officer of company duly authorised by the board |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 42 |
Offer or invitation for subscription of securities on private placement |
Yes |
a. Private company alloting shares to outsiders before allotment to existing shareholders and by not passing special resolution and not complying with the provisions of private placement ( sec 42) |
Amount of Offer or 2 crores whichever is higher. |
Amount of Offer or 2 crores whichever is higher. |
|
Sec 46 |
Certificate of shares |
Yes |
Issue of a duplicate share certificate with an intention to default |
5 times(Min) – 10 times(max) the value of the shares involved in the issue of duplicate certificate or Rs.10 Crores which ever is higher |
1 time(Min) – 3 times(max) the amount involve in the fraud |
6 Months – 10 Years |
Defaulting in complying with any requirement under this section |
Rs.10,000/- + Rs.1,000 for every day(It it is a continuing one) after the first during which the contravention continues |
Rs.10,000/- + Rs.1,000 for every day(It it is a continuing one) after the first during which the contravention continues |
||||
Sec 53 |
Prohibition on issue of shares at discount |
Yes |
Defaulting in complying with any requirement under this section |
Rs. 1 Lakh – Rs. 5 Lakhs |
Rs. 1 Lakh – Rs. 5 Lakhs |
Maximum 6 months |
Sec 56 |
Transfer & transmission of securities |
Yes |
Default in complying the provisions of this section |
Rs.25,000 – Rs.5 Lakhs |
Rs.10,000 – Rs.1 Lakh |
|
Sec 57 |
Punishment for personation of shareholder |
Yes |
Defaulting in complying with any requirement under this section |
Rs. 1 Lakh – Rs.5 Lakhs |
1 Year (Min) – 3 years(Max) |
|
Sec 58(6) |
Refusal of registration and appeal against refusal |
Yes |
Defaulting in complying with any requirement under this section |
Rs. 1 Lakh – Rs.5 Lakhs |
1 Year (Min) – 3 years(Max) |
|
Sec 59(5) |
Rectification of register of members |
Yes |
Defaulting in complying with any requirement under this section |
Rs. 1 Lakh – Rs. 5 Lakhs |
Rs. 1 Lakh – Rs.3 Lakhs |
Maximum 1 year |
Sec 60 |
Publication of authorised, subscribed & paid up capital |
Yes |
No indicating its authorised capital in any notice/ ad/letter in the same font and style of subscribed capital and paid up capital. |
Rs.10,000/- |
Rs.5,000/- |
|
Sec 64 |
Notice to be given to registrar for alteration of share capital |
Yes |
Default in complying the provisions of this section |
Rs.1,000/day or Rs.5 Lakhs whichever is less |
Rs.1,000/day or Rs.5 Lakhs whichever is less |
|
Sec 67 |
Restriction on purchase by company or giving of loans by it for purchase of its shares |
Yes |
Default in complying the provisions of this section |
Rs.1 Lakh – Rs.25 Lakhs |
Rs.1 Lakh – Rs.25 Lakhs |
3 Years |
Sec 68(11) |
Power of Company to purchase its own securities |
Yes |
Defaulting in complying with any requirement under this section |
Rs. 1 Lakh – Rs. 3 Lakhs |
Rs. 1 Lakh – Rs. 3 Lakhs |
Maximum 3 years |
Sec 71(11) |
Debentures |
Yes |
Defaulting in complying with any requirement under this section |
Rs. 2 Lakh – Rs. 5 Lakhs |
Maximum 3 years |
|
Sec 73 |
Prohibition on acceptance of deposits from public |
Yes |
Default in complaince of acceptance of money from Customers, Directors, members etc |
Rs.5,000/- plus Rs.500/- per day till contravention continues |
Rs.5,000/- plus Rs.500/- per day till contravention continues |
|
Sec 77 |
Duty to register charges |
Yes |
Not registering the particulars of charge within 30 days to ROC |
Rs.1 lakh to Rs. 10 lakhs |
Rs.25,000 – Rs.1 Lakh |
6 months |
Sec 85 |
Company’s register of charges |
Yes |
Non maintenance of Register of Charges in Form CGH7 at its registered office |
Rs.1 lakh to Rs. 10 lakhs |
Rs.25,000 – Rs.1 Lakh |
6 months |
Sec 88 |
Register of members |
Yes |
Non maintenance of Register of Members in Form MGT 1 |
Rs.50,000 – Rs.3 Lakhs, plus Rs.1,000/- per day till the contravention continues |
Rs.50,000 – Rs.3 Lakhs, plus Rs.1,000/- per day till the contravention continues |
|
Sec 89 |
Declaration in respect of beneficial interest in any share |
Yes |
Not stating the particulars of Form No.MGT 4 & MGT 5 in the register of members and non filing of MGT 6 with ROC within 30 days |
Rs.50,000/- plus Rs.1,000/- per day till contravention continues |
Rs.50,000/- plus Rs.1,000/- per day till contravention continues |
|
Sec 92(5) |
Annual return |
Yes |
Non filing of Annual Return to ROC in Form MGT 7 within 60 days and non signing by the director etc |
Rs.50,000 – Rs.5 Lakhs |
Rs.50,000 – Rs.5 Lakhs |
Maximum 6 months |
Sec 94 |
Place of Keeping and inspection of registers, returns etc |
Yes |
Default in complying the provisions of this section |
Rs.1000/- per ever day subject to maximum of Rs.1 Lakh |
Rs.1000/- per ever day subject to maximum of Rs.1 Lakh |
|
Sec 96 |
AGM |
Yes |
Not holding AGM within 15 mnths from last AGM or not holding within 6 months from the end of financial year |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 100 |
Calling of EGM |
Yes |
Default in complying the provisions of this section |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 101 |
Notice of Meeting |
Yes |
21 days clear notice was not given while calling for a general meeting |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 102 |
Statement to be annexed to notice |
Yes |
Defaulting in complying with any requirement under this section |
For every Promoter, Director, manager or KMP – Rs.50,000 or 5 times the benfit accruing to them or their relatives which ever is more |
||
Sec 105 |
Proxy |
Yes |
Default in complying the provisions of this section |
Upto Rs.1 Lakh |
||
Sec 111 |
Circulation of members resolution |
Yes |
Default in complying the provisions of this section |
Rs. 25,000/- |
Rs. 25,000/- |
|
Sec 117 |
Filing of resolutions with ROC |
Yes |
Failure to file Copy of resolution with copy of agreement/ explanatory statement in Form No.MGT-14 with ROC within 30 days |
Rs. 5 Lakhs – Rs. 25 Lakhs |
Rs. 1 Lakh – Rs. 5 Lakhs |
|
Sec 118(11) |
Minutes of proceedings of general meeting, meeting of Board and other meeting & resolution passed by postal ballot |
Yes |
Default in complying with the provisions of this section |
Rs. 25,000 |
Rs. 5,000 |
|
Sec 118(12) |
Minutes of proceedings of general meeting, meeting of Board of Directors and other meeting and resolutions passed by postal ballot. |
Yes |
Any person found guilty of tampering with the minutes- Maximum imprisonment for 2 years and Fine- Not less than Rs. 25,000 but which may extend to Rs. 1 lakh |
|||
Sec 119 |
Inspection of Minute book of General Meeting |
Yes |
Default in complying with the provisions of this section |
Rs. 25,000 |
Rs.5,000 for each refusal |
|
Sec 123 |
Declaration of dividend |
Yes |
Default in complying the provisions of this section |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 127 |
Punishment for failure to distribute dividends |
Yes |
Non posting of warrant within 30 days in case of declaration of dividend – every director of the company if he is knowingly a party the default |
Simple interest @ 18% P.a for the period of default |
Rs.1,000 for every day during which such default continues |
2 Years |
Sec 128(6) |
Books of account, etc., to be kept by Company |
Yes |
Defaulting in complying with any requirement under this section |
Rs.50,000 – Rs.5 Lakhs |
Maximum 1 Year |
|
Sec 129(7) |
Financial statement |
Yes |
Defaulting in complying with any requirement under this section |
Rs.50,000 – Rs.5 Lakhs |
Maximum 1 Year |
|
Sec 134 |
Financial statement, Board’s report, etc |
Yes |
Default in complying the provisions of this section |
Rs. 50,000 – Rs.25 Lakhs |
Rs.50,000 – Rs.5 Lakhs |
Maximum 3 Years |
Sec 135 |
CSR Responsibility |
Yes |
Default in complying with the provisions of this section |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 137(3) |
Copy of financial statement to be filed with Registrar |
Yes |
Non-filing of copy of financial statements in Form AOC-4 within 30 days |
Rs.1,000 for every day in default but not more than 10 lakhs |
Rs. 1 Lakh – Rs.5 Lakhs |
Maximum 6 Months |
Sec 140 |
Removal, resignation of auditor & giving special notice |
Yes |
Removal of auditor without passing special resolution or without obtaining approval from Central Govt or Non-filing of Form ADT-2 with government while removal |
Rs.25,000 – Rs.5 Lakhs |
Rs.10,000 – Rs.1 lakh |
1 Year |
Sec 141 |
Eligibility, qualifications & disqualifications of auditors |
Yes |
Default in complying the provisions of this section |
Rs.25,000 – Rs.5 Lakhs |
Rs.10,000 – Rs.1 lakh |
1 Year |
Sec 149 |
Company to have Board of directors |
Yes |
Default in complying the provisions of this section |
Rs. 50,000 – Rs.5 Lakhs |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 152 |
Appointment of directors |
Yes |
Non submission of DIR-2 & declaration that he is not disqualified to be as a director & Non-filing of DIR-12 with ROC within 30 days of appointment |
Rs. 50,000 – Rs.5 Lakhs |
Rs.50,000 + Rs.500/- per day from the first during which the contravention continues |
Maximum 6 Months |
Sec 155 |
Prohibition to obtain more than one DIN |
Yes |
Defaulting in complying with any requirement under this section |
Rs.50,000 + Rs.500/day after the first during with the contravention continues |
Maximum 6 months |
|
Sec 156 |
Director to intimate DIN |
Yes |
Defaulting in complying with any requirement under this section |
Rs.50,000 + Rs.500/day after the first during with the contravention continues |
Maximum 6 months |
|
Sec 157 |
Company to inform DIN to registrar |
Yes |
Failure to furnish DIN under subsection (1), before the expiry of the period specified under section 403 with additional fee |
Rs.25,000 – Rs.1 Lakh |
Rs.25,000 – Rs.1 Lakh |
|
Sec 158 |
Obligation to indicate DIN |
Yes |
1)Non furnishing of DIN of any of the directors with ROC. 2) Non filing of DIR-6 (when any change in the particulars of director) along with DIR-7 within a period of 30 days with central Government |
Rs. 50,000 – Rs.5 Lakhs |
Rs. 50,000 – Rs.5 Lakhs |
|
Sec 162 |
Appointment of director to be voted individually |
Yes |
Default in complying with any requirement under this section |
Rs.50,000 – Rs. 5 Lakhs |
Rs.50,000 – Rs. 5 Lakhs |
|
Sec 165 |
Number of Directorships |
Yes |
Defaulting in complying with any requirement under this section |
Rs.5,000 – Rs.25,000 for every day during which the contravention continues |
Rs.5,000 – Rs.25,000 for every day during which the contravention continues |
|
Sec 166 |
Duties of directors |
Yes |
Defaulting in complying with any requirement under this section |
Rs.1 Lakh – Rs.5 Lakh |
||
Sec 167 |
Vacation of office of director |
Yes |
Any person who after knowing that the office of director held by him has become vacant on account of any disqualification specified in subsection(1), still acts as a director |
Rs.5,000/- to Rs.25,000 per day during which the contravention continues |
Rs. 1 Lakh – Rs. 5 Lakhs |
Maximum 1 Year |
Sec 168 |
Resignation of director |
Yes |
1) Non submission of notice to company by the director while resigning. 2)No intimation to ROC by the company about the fact of such resignation in report of directors. 3) Not forwaded a copy of resolution along with detailed reasons to the ROC within 30 days in FORM DIR-11 |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 170 |
Register of Directors and KMP and their shareholding |
Yes |
Default in complying with the provisions of this section |
Rs.50,000 – Rs. 5 Lakhs |
Rs.50,000 – Rs. 5 Lakhs |
|
Sec 173 |
Meetings of board |
Yes |
Failure by the officer of the company to give notice under this section |
Rs. 25,000 |
||
Sec 174 |
Quorums for meeting of board |
Yes |
Default in complying with the provisions of this section |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 179 |
Powers of board |
Yes |
Default in complying with the provisions of this section |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 180 |
Restrictions on powers of board |
Yes |
Non passing of special resolution in the case of 1) Sell, lease of any undertaking of the company. 2) Borrow of money, where the (money to be borrowed+ Already borrowed money) > (Paid up capital+Free reserves) |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 182(4) |
Prohibitions and restrictions regarding political contributions |
Yes |
Defaulting in complying with any requirement under this section |
5 times of the amount of contribution in contravention |
5 times of the amount of contribution in contravention |
Maximum 6 Months |
Sec 184(4) |
Disclosure of interest by director |
Yes |
Defaulting in complying with any requirement under this section |
Rs.50,000 – Rs.1 Lakh |
Minimum 1 year |
|
Sec 185(2) |
Loan to directors |
Yes |
When a company has advanced an loan directly or indirectly to any of its directors or to such other person in whom the director is interested. |
Rs. 5 Lakhs – Rs.25 Lakhs |
Rs. 5 Lakhs – Rs.25 Lakhs |
Maximum 6 months |
Sec 186(13) |
Loan and investment by Company |
Yes |
Defaulting in complying with any requirement under this section |
Rs. 25,000/- – Rs.5 Lakhs |
Rs. 25,000/- – Rs.1 Lakh |
Maximum 2 years |
Sec 187(4) |
Investments of Company to be held in its own name |
Yes |
Defaulting in complying with any requirement under this section |
Rs. 25,000/- – Rs.25 Lakhs |
Rs. 25,000/- – Rs.1 Lakh |
Maximum 6 Months |
Sec 188(5) |
Related party transactions |
Yes |
Defaulting in complying with any requirement under this section |
In case of unlisted Company, Rs.25,000 – Rs.5 Lakhs |
||
Sec 189 |
Register of Contracts/Arrangements |
Yes |
Defaulting in complying with any requirement under this section |
Rs. 25,000 |
||
Sec 190 |
Contract of employment with managing or whole-time directors |
Yes |
Default in complying with the provisions of this section |
Rs. 25,000 |
Rs.5,000 for each default |
|
Sec 191 |
Payment to director for loss of office in connection with transfer of undertaking, property or shares |
Yes |
Defaulting in complying with any requirement under this section |
Rs.10,000 + Rs.1,000/day after the first during which the contravention continues |
Rs.25,000 – Rs.1 Lakh |
|
Sec 194 |
Prohibition on forward dealings in securities of company by director or KMP |
Yes |
Defaulting in complying with any requirement under this section by adirector or KMP |
Rs.1 Lakh – Rs.5 Lakhs |
May extend to 2 years |
|
Sec 204 |
Secretarial audit for bigger companies |
Yes for certain class of companies |
Default in complying with the provisions of this section |
Rs.1 Lakh – Rs.5 Lakhs |
Rs.1 Lakh – Rs.5 Lakhs |
|
Sec 206 |
Power to call for information, inspect books and conduct enquires |
Yes |
Default in complying with the provisions of this section |
Rs.1 Lakh + Rs.500/day it the default continues |
Rs.1 Lakh + Rs.500/day it the default continues |
|
Sec 207 |
Conduct of inspection and inquiry |
Yes |
Defaulting in complying with any requirement under this section |
Rs.25,000/- – Rs.1 Lakh |
Maximum 1 year |
|
Sec 405 |
Power of Central Government to direct companies to furnish information or statistics |
Yes |
Default in complying with the provisions of this section |
Rs. 25,000 |
Rs.25,000 – Rs.3 Lakh |
6 months |
Sec 447 |
Punishment for Fraud |
Yes |
Defaulting in complying with any requirement under this section |
Any person who is found to be guilty of fraud- Maximum imprisonment of 6 months may extend to 10 years & also liable to fine which may extent to 3 times the amount involved. |
||
Sec 450 |
Punishment where no specific penalty or punishment is provided |
Yes |
Where no specific penalty/punishment is provided during contravention |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
Rs.10,000/- plus Rs.1,000/- per day till the contravention continues |
|
Sec 451 |
Punishment in case of repeated default. |
Yes |
Default in complying with the provisions of this section |
Twice the amount of fine already impounded |
Twice the amount of fine already impounded |
Same imprisonment already impounded |
Sec 452 |
Punishment for wrongful witholding of property |
Yes |
Default in complying with the provisions of this section |
Rs.1 Lakh – Rs.5 Lakhs |
||
Sec 453 |
Punishment for improper use of “Limited” or “private Limited” |
Yes |
Default in complying with the provisions of this section |
Rs.500/day – Rs.2,000/day for every continuing day of default |
Rs.500/day – Rs.2,000/day for every continuing day of default |
|
Sec 454 |
Adjudication of penalties |
Yes |
Default in complying with the provisions of this section |
Rs.25,000 – Rs.5 Lakhs |
Rs.25,000 – Rs.1 Lakhs |
6 Months |
Chapter IV |
Registration of charges |
Yes |
Defaulting in complying with any requirement under this section |
Rs. 1 Lakh – Rs. 10 Lakhs |
Rs. 25,000/- – Rs.1 Lakh |
Maximum 6 months |
Note :
1) Officer in default :-
For the purpose of any provision in this Act which enacts that an officer of the company who is in default shall be liable to any penalty or punishment by way of imprisonment, fine or otherwise, means any of the following officers of a company, namely:—
(i) whole-time director;
(ii) key managerial personnel;
(iii) where there is no key managerial personnel, such director or directors as specified by the Board in this behalf and who has or have given his or their consent in writing to the Board to such specification, or all the directors, if no director is so specified;
(iv) any person who, under the immediate authority of the Board or any key managerial personnel, is charged with any responsibility including maintenance, filing or distribution of accounts or records, authorises, actively participates in, knowingly permits, or knowingly fails to take active steps to prevent, any default;
(v) any person in accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act, other than a person who gives advice to the Board in a professional capacity;
(vi) every director, in respect of a contravention of any of the provisions of this Act, who is aware of such contravention by virtue of the receipt by him of any proceedings of the Board or participation in such proceedings without objecting to the same, or where such contravention had taken place with his consent or connivance;
(vii) in respect of the issue or transfer of any shares of a company, the share transfer agents, registrars and merchant bankers to the issue or transfer;
2) General punishment where no specific penalty/punishment is provided [Sec 450]:
If a company or any person contravenes any provision of this Act or the rules made there under, for which no penalty/punishment is provided elsewhere in this Act – fine upto Rs 10,000 on company and officer in default & in case of continuous contravention with further fine upto Rs.1,000 per day.
(Author can be reached at [email protected])
If a person uses private limited company without registration under roc
What is the penalty for the same
We acquired a private company that was no operational and the owners failed to maintain a resident director and only had one shareholder for some time. We have since corrected all of the issues. What is the penalty for such acts? Again the entity did not operate at all – entirely dormant during the infractions.
In Supporting srihari, providing further more clarification,
1.If a company is unable to spend the contribution amount in a year it should specify the reasons for not spending that amount in its Board of Director’s annual report.
2.There is no penal provision regarding non-compliance of the said provisions in means of spending or in reporting part. However, there are clear penal consequences if a company fails to even set up the CSR committee or fails to create a policy etc.
If a company fails to spend the money, it only has to report this along with reasons. Section 134(8) of the Act provides for such penal provision stating in case the company does not disclose the reasons in the Board‘s report, the company shall be punishable with fine which shall not be less than fifty thousand 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.
3. The new law does not specify punishment for failure to spend CSR expenditure. However such cases are covered under section 450 read with section 451 which provides for residual provisions for the same. Fine under section 450 may extend to ten thousand rupees, and where the contravention is continuing one, a further fine to one thousand rupees for every day after the first during which contravention continues is imposed.
“Excellence should be a Habit”, but not in the case of offences or defaults in the 2013 Act. “Default should not be a habit” says the new law. As per Section 451 of the 2013, the defaulter is punished either with fine or with imprisonment and where the same offence is committed for the second or subsequent occasions within a period of three years, then, that company and every officer thereof who is in default shall be punishable with twice the amount of fine for such offence in addition to any imprisonment provided for that offence.
Good and handy summary of important section. The section relating to CRS is provided in the chart. My qurey is which section of Company’s Act specifies the actual penalty amount for violation of CSR provision.