Section 56: Fines and penalties

(1) For the recovery of any amount from a party that has complied with an order of the Commission, the Commission may serve upon the concerned person a copy of the notice as may be prescribed by rules requiring such person to pay the said amount within the time specified in the notice. (2) If the amount referred to in the notice under sub-section (1) is not paid within the specified time, the Commission may proceed to recover the said amount from the party in default, in any one or more of the following manners, namely:— (a) attachment of immovable or sale of any moveable property, including bank account of the party; (b) appointment of a receiver for the management of the movable or immoveable property of the party; (c) recovery of the amount as arrears of land revenue through the district revenue officer; (d) require any of the following, by notice in writing, the person to deduct and pay the sum specified in the notice on or before such date as may be so specified, namely:— (i) from whom any money is due or may become due to the party; (ii) who holds, or controls the receipt or disposal of or may subsequently hold, or control the receipt or disposal of, any money belonging to the party or on account of the party; or (iii) who is responsible for the payment of any sum to the party. (3) Any bank, receiver, district revenue officer or person who has paid any sum in compliance with a notice under sub-section (2) shall be deemed to have paid such a sum to the Commission in respect of the party and the receipt of the Commission shall constitute a good and sufficient discharge of the liability of such bank, receiver, district revenue officer or person to the extent of the sum referred to in such receipt. (4) If any bank, receiver, district revenue officer or undertaking on whom a notice is served, fails to attach, receive, recover, deduct and pay, as the case may be, the mount specified in the said notice, such bank, receiver, district revenue officer or undertaking shall be treated as a defalter and the amount specified in the said notice shall be recoverable from there, as the case be, by the Commission in accordance with the provisions of this Act. (5) The Commission may, by order, direct any bank, receiver, district revenue officer or person which is defaulter as referred to in sub-section (4), to pay by way of penalty, such sum as specified in the order, after giving to the bank, receiver, district revenue officer or person an opportunity of being heard, if it determines that such bank, receiver, District Revenue Officer or Person has willfully failed to comply with the order of the Commission. (6) For the proposes of recovery of the amount under sub-section (2), the Commission shall have the same powers as a Civil Court conferred on it under the Code of Civil Procedure, 1908 (Act V of 1908). (7) The Commission may seek the assistance of regulatory bodies, including the State Bank, to impose penalties as well as recover fines from defaulting parties. (8) The Commission may issue guidelines regulating the procedure for the recovery of amounts under this section and any other matters connected with or incidental to the operation of this section. (9) Subject to the Public Finance Management Act, 2019, all penalties and fines recovered under this Act shall be deposited in account maintained by the Commission.

Effective date: 2023-08-11

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