(1) Whoever willfully disobeys any direction lawfully given by any person or authority empowered under this Act to give such direction, or obstructs any person or authority in the discharge of any functions which such person or authority is required or empowered under this Act to discharge, shall be liable to a penalty which may extend to five lakh rupees.
(2) Whoever being required by or under this Act to supply any information willfully withholds such information or gives information which he knows to be false or which he does not believe to be true, shall be liable to a penalty which may extend to five lakh rupees.
(3) For the purpose of adjudging under sub-sections (1) and (2), the authority shall hold an inquiry in the prescribed manner after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty.
(4) While holding an inquiry the authority shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the authority, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, it is satisfied that the person has failed to comply with the provisions specified in sub-sections (1) and (2), it may by order impose the penalty specified in those subsections to be deposited within thirty days of the order in the account of the Government.
(5) While determining the quantum of penalty under this section, the authority shall take into account the category, size and type of the clinical establishment and local conditions of the area in which the establishment is situated.
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(6) Any person aggrieved by the decision of the authority may prefer an appeal to the Council within a period of three months from the date of the said decision.
(7) The manner of filing the appeal referred to in sub-section (6) shall be such as may be prescribed. (8) The penalty levied under sections 38 and 39 shall be credited to such account as the Government may by order specify in this behalf.