Company Law CA IPC Penalties (Important)

1 | P a g e CA Amit Talda’s TALDA LEARNING CENTRE 9730768982 Important Penalties for CS Executive/IPC CONTRAVENTION PENALTY PRESCRIBED Misstatement in Prospectus Against Company: Fine of Not Less than Amount Involved but not more than 3 times of Amount Involved Against Officer/Directors: Fine of Not Less than Amount Involved but not more than 3 times of Amount Involved Imprisonment of Not less than 6 months but not more than 10 years. If public interest is involved than not less than 3 years. Contravention with Private Placement Regulations Not Less than Amount involved or 2 Crores; Whichever is Higher Contravention with the Regulations of Alteration of Share capital Fine which may extend to Rs.1,000/- for each day during which such default continues, or Rs.5 Lacs, whichever is less. Non Submission of copy of Prospectus with ROC Against Company: Fine which shall not be less than Rs.50,000/- but which may extend to Rs.3 lacs Against Officer/Director: Every person who is knowingly a party to the issue of such prospectus shall be punishable with imprisonment for a term which may extend to 3 years or with fine not less than Rs.50,000/- but which may extend to Rs.3 lacs, or with both. Contravention with issue of Abridged Prospectus Rs. 50,000 for each default Illegal Association carrying on Business Upto Rs. 1,00,000 Default in Registration of Charge Company: Rs. 1 Lakh to Rs. 10 Lakhs Officers: Rs. 25,000 to Rs. 1 Lakh & Imprisonment not exceeding 6 months Return of Allotment Company & Officers: Rs. 1,000 each day or Maximum Rs. 1,00,000. No Criminal Liability Default in holding AGM Company: Fine upto Rs. 1,00,000 & in case of Continuing default Rs. 5,000 per day. Contravention with rules of Minutes Company: Fine upto Rs. 25,000 Officer: Fine upto Rs. 5,000. Tampering with Minutes Officers: Fine not less than Rs. 25,000 but maximum Rs. 1,00,000. Imprisonment of upto 2 Years. Default in filing Report on AGM (only for Listed Company) Company: Fine not less than Rs. 1 lakh and Maximum Rs. 5 Lakhs Officers: Fine not less than Rs. 25,000 but upto Rs. 1 Lakh No Criminal Liability Default in Provisions of Deposits Company: Fine of Not less than 1 Crore but maximum Rs. 10 Crores Officer: Fine of not less than Rs. 25 Lakhs but maximum Rs. 2 Crores Imprisonment of upto 7 years.