(1) An Offence duly authorised by the State Government in this behalf may accept from any person, against whom a reasonable suspicion exists that he has committed any offence punishable under this Act, such sum of money as may be prescribed, by way of composition of the offence which such person is suspected to have committed.
(2) On payment of such sum of money to the Officer mentioned in sub-section (1) the suspected person, if in custody, shall be discharged and no other proceeding shall be taken against him in respect of the offence compounded.
(3) The provisions of this section shall apply also where a prosecution or an appeal against conviction of offence under this act is pending and in such a case the composition of such offence under this section shall have the effect of the acquittal of the accused with whom an offence has been compounded.