Section 38: Penalty

38. Penalty.__ (1) The Commission may by order direct any undertaking or any director, officer or employee of an undertaking, to pay by way of penalty such sum as may be specified in the order if, after giving the undertaking concerned an opportunity of being heard, it determines that such undertaking:___ (a) has been found engaged in any activity prohibited under this Act; (b) has failed to comply with an order of the Commission made under this Act; (c) has failed to supply a copy of the agreement or any other documents and information as required under this Act or requisitioned by the Commission; (d) has furnished any information or made any statement to the Commission which such undertaking knows or has reason to believe to be false or found by the Commission to be inaccurate; or (e) knowingly abuses, interferes with, impedes, imperils, or obstructs the process of the Commission in any manner: Provided that fair comments made in good faith and in the public interest on the working of the Commission or on any order of the Commission issued after the completion of any proceedings, shall not be subject to the imposition of a penalty. (2) The Commission may impose penalties at the following rates, namely:___ (a) for a contravention of any provision of Chapter II of the Act, an amount not exceeding seventy-five million rupees or an amount not exceeding ten percent of the annual turnover of the undertaking, as may be decided in the circumstances of the case by the Commission; or (b) for non-compliance of any order, notice or requisition of the Commission an amount not exceeding one million rupees, as may be decided in the circumstances of the case by the Commission; and (c) for clause (e) in sub-section (1), an amount not exceeding one million rupees as may be decided in the circumstances of the case by the Commission. (3) If the violation of the order of the Commission is a continuing one, the Commission may also direct the undertaking guilty of such violation shall pay by way of penalty a further sum which may extend to one million rupees for every day after the first such violation. (4) Any penalty imposed under this Act shall be recoverable as provided in section 40. (5) Notwithstanding anything contained in this Act or any other law for the time being in force, failure to comply with an order of the Commission shall constitute a criminal offence punishable with imprisonment for a term which may extend to one year or with fine which may extend to twenty five million rupees and the Commission may, in addition to, or in lieu of, the penalties prescribed in this Act, initiate proceedings in a Court of competent jurisdiction.

Effective date: 2010-01-01

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