(1) A person who makes or assists in making a report, return, notice or other document required in this Act to be sent to the Registrar or to any other person that :––
(a) contains an untrue statement of a material fact ; or
(b) omits to state a material fact required in the report or necessary to make a statement contained in the report not misleading in the light of the circumstances in which it was made ;
is guilty of an offence and liable on summary conviction :––
(i) in the case of individual, to a fine not greater than one thousand rupees or to imprisonment for a term not greater than ninety days or to both such fine and imprisonment ;
(ii) in the case of a person other than an individual, to a fine not greater than ten thousand rupees.
(2) Where the person guilty of an offence under sub-section (1) is a body corporate and whether or not the body corporate has been prosecuted or convicted, any director or officer of the body corporate who knowingly authorizes, permits or acquiesces in the offence is also guilty of an offence and liable on summary conviction to a fine of not more than one thousand rupees or to imprisonment for a term not exceeding ninety days or to both such fine and imprisonment.
(3) No person is guilty of an offence in pursuance of sub-section (1) or (2) where the untrue statement or omission,––
(a) was unknown to him/her ; and
(b) in the exercise of reasonable diligence, could not have been known to him/her.
(4) Every person who,––
(a) without reasonable cause contravenes a provision of this Act for which no penalty is otherwise provided ; or
(b) fails to give any notice, send any return or document that is required for the purposes of this Act ;
is guilty of an offence and is liable on summary conviction to a fine or not more than one thousand rupees.
(5) Where a person is convicted of an offence in pursuance of this Act, the Court may, in addition to any punishment imposed, order the person to comply with the provisions of the Act or the regulations for the contravention of which he/she has been convicted.
(6) No prosecution for an offence under this Act shall be commenced after two years from the time when the subject matter of the complaint arose.
(7) No civil remedy for an act or omission under this Act is suspended or affected by reason that the act or omission is an offence under this Act.