[CHAPTER V

PENALTIES

Penalties.

58B. (1) Whoever in any application, declaration, return, statement, information or particulars made, required or furnished by or under or for the purposes of any provisions of this Act, or any order, regulation or direction made or given thereunder or in any prospectus or advertisement issued for or in connection with the invitation by any person, of deposits of money from the public wilfully makes a statement which is false in any material particular knowing it to be false or wilfully omits to make a material statement shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine.

(2) If any person fails to produce any book, account or other document or to furnish any statement, information or particulars which, under this Act or any order, regulation or direction made or given thereunder, it is his duty to produce or furnish or to answer any question put to him in pursuance of the provisions of this Act or of any order, regulation or direction made or given thereunder, he shall be punishable with fine which may extend to ¹[ One lakh rupees] in respect of each offence and if he persists in such failure or refusal, with further fine which may extend to ²[five thousand rupees] for every day, after the first during which the offence continues.

(3) If any person contravenes the provisions of section 31, he shall be punishable with fine which may extend to the amount of the bill of exchange, hundi, promissory note or engagement for payment of money in respect whereof the offence is committed.

(4) If any person discloses any credit information, the disclosure of which is prohibited under section 45E, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

[(4A) If any person contravenes the provisions of sub-section (1) of section 45-IA, he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to five years and with fine which shall not be less than one lakh rupees but which may extend to  ³[twenty-five lakh rupees].

(4AA) If any auditor fails to comply with any direction given or order made by the Bank under section 45MA, he shall be punishable with fine which may extend to  ⁴ [ten lakh rupees].

(4AAA) Whoever fails to comply with any order made by the Company Law Board under sub-section (2) of section 45QA, shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to a fine of not less than ⁵[five thousand rupees] for every day during which such non-compliance continues.]

(5) If any person [other than an auditor]—

(a)  receives ⁶[any deposit without being authorised so to do or] in contravention of any direction given or order made under Chapter IIIB; or

[(aa) fails to comply with any direction given or order made by the Bank under any of the provisions of Chapter IIIB; or]

(b)  issues any prospectus or advertisement otherwise than in accordance with ⁷[section 45J] or any order made under section 45J, as the case may be, he shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine which may extend,—

(i) in the case of a contravention falling under clause (a), to twice the amount of the deposit received; and

(ii)  in the case of a contravention falling under clause (b), to twice the amount of the deposit called for by the prospectus or advertisement.

[(5A) If any person contravenes any provision of section 45S, he shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of deposit received by such person in contravention of that section, or two thousand rupees, whichever is more, or with both :

Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, the imprisonment shall not be less than one year and the fine shall not be less than one thousand rupees.

(5B) Notwithstanding anything contained in section 29 of the Code of Criminal Procedure, 1973 (2 of 1974), it shall be lawful for a Metropolitan Magistrate or a Judicial Magistrate of the first class to impose a sentence of fine in excess of the limit specified in that section on any person convicted under sub-section (5A).]

(6) If any other provision of this Act is contravened or if any default is made in complying with any other requirement of this Act or of any order, regulation or direction made or given or condition imposed thereunder, any person guilty of such contravention or default shall be punishable with fine which may extend to  ⁸[one lakh rupees]  and where a contravention or default is a continuing one, with further fine which may extend to ⁹[ten thousand rupees]  for every day, after the first, during which the contravention or default continues.

1. Subs. by Act 23 of 2019, s. 142 (w.e.f. 9-8-2019)

2.   Subs. by Act 23 of 2019, s. 142 (w.e.f. 9-8-2019)

3. Subs. by Act 23 of 2019, s. 142 (w.e.f. 9-8-2019)

4. Subs. by Act 23 of 2019, s. 142 (w.e.f. 9-8-2019)

5. Subs. by Act 23 of 2019, s. 142 (w.e.f. 9-8-2019) 

6. Subs. by Act 23 of 2019, s. 142 (w.e.f. 9-8-2019)

7. Subs. by Act 23 of 2019, s. 142 (w.e.f. 9-8-2019)

8. Subs. by Act 23 of 2019, s. 142 (w.e.f. 9-8-2019)

9. Subs. by Act 23 of 2019, s. 142 (w.e.f. 9-8-2019)