Dec 23, 2020

Commencement of various provisions of the Companies (Amendment) Act, 2020

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MCA has enforced the following provisions of the Companies (Amendment) Act, 2020 w.e.f. 21st December, 2020:

Section no. of the Companies (Amendment) Act, 2020Corresponding section of the Companies Act, 2013Amendments
Amendments related to ‘Winding Up’
Section 46Section 284- Promoters, directors, etc., to cooperate with Company Liquidator
  • When a person required to assist a Company Liquidator does not do so, the Company Liquidator may make an application to NCLT for necessary directions.
  • Further, NCLT may direct such person to comply with the directions of the Company Liquidator and to cooperate with him in discharging his functions and duties.
Section 47Section 302- Dissolution of company by TribunalSub-section (3) has been substituted to provide that NCLT shall forward a copy of the order of dissolution to the Registrar, and direct the Company Liquidator to also forward such copy to the Registrar, who shall record in the register relating to the company a minute of the dissolution of the company.
Section 50Section 348- Company Liquidator to deposit monies into scheduled bankSub-section (6) has been substituted to provide that if a Company Liquidator, who is an Insolvency Professional, is in default in complying with the provisions of the section, the default will be deemed to be a contravention of the IBC, 2016 and the rules and regulations made thereunder.
Section 51Section 356- Powers of Tribunal to declare dissolution of company voidSub-section (2) has been substituted to provide that NCLT shall forward a copy of the order to the Registrar, and direct the Company Liquidator or the person on whose application such order was made to also file a certified copy of the order with the Registrar within thirty days of the order.
Reduction in amount of monetary Penalty
Section 12Section 64- Notice to be given to Registrar for alteration of share capital

Offence: In case a company fails to file notice of alteration or increase or redemption of share capital along with an altered memorandum with the Registrar within 30 days.

Changes:

  • The amount of penalty on company and every officer who is in default has been reduced from Rs. 1,000 to Rs. 500 for each day during which default continues.
  • Further, the maximum amount of penalty has been reduced from Rs. 5 lakh to Rs. 1 lakh.
Section 20Section 92- Annual return

Offence: In case a company fails to file its annual return within specified period (i.e. 60 days from AGM).

Changes:

  • The amount of penalty on company and every officer who is in default has been reduced from Rs. 50 thousand to Rs. 10 thousand.
  • Further, the maximum amount of penalty has been reduced from Rs. 5 lakh to Rs. 2 lakh in case of a company and Rs. 50 thousand in case of an officer who is in default.
Section 22Section 117- Resolutions and agreements to be filed

Offence: In case any company fails to file the resolution or the agreement with the Registrar within specified time (i.e. 30 days from the date of passing the resolution).

Changes:

  • The amount of penalty on company has been reduced from Rs. 1 lakh to Rs. 10 thousand & in case of continuing failure, each day penalty has been reduced from Rs. 500 to Rs. 100 and the maximum amount of penalty has been reduced from Rs. 25 lakh to Rs. 2 lakh.
  • The amount of penalty on officer who is in default has been reduced from Rs. 50 thousand to Rs. 10 thousand & in case of continuing failure, each day penalty has been reduced from Rs. 500 to Rs. 100 and the maximum amount of penalty has been reduced from Rs. 5 lakh to Rs. 50 thousand.
Section 28Section 137- Copy of financial statement to be filed with Registrar

Offence: In case a company fails to file the copy of the financial statements with the Registrar within the  specified time (i.e. within 30 days from the date of AGM).

Changes:

  • The amount of penalty on company has been reduced from Rs. 1,000 to Rs. 100 for each day during which the failure continues and maximum amount of penalty has been reduced from Rs. 10 lakh to Rs. 2 lakh.
  • The amount of penalty on MD/ CFO/ directors has been reduced from Rs. 1 lakh to Rs. 10 thousand and maximum amount of penalty has been reduced from Rs. 5 lakh to Rs. 50 thousand.
Section 29Section 140- Copy of financial statement to be filed with Registrar

Offence: In case the auditor fails to file his resignation with the Registrar within the specified time (i.e. 30 days from the date of resignation).

Changes:

The maximum amount of penalty on auditor has been reduced from Rs. 5 lakh to Rs. 2 lakh.

Section 33Section 165- Number of directorships

Offence: In case a person holds office as a director in more than the specified limit.

Changes:

The amount of penalty on such person has been reduced from Rs. 5,000 to Rs. 2,000 for each day after the first during which such violation continues and maximum amount of penalty has been restricted to Rs. 2 lakh.

Omitting punishment with imprisonment
Section 3Section 8- Formation of companies with charitable objects, etc.

Default in complying with the requirements relating to formation of companies with charitable objects, etc.

Old Penal ProvisionNew Penal Provision

Director and every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 3 years

OR

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 25 lakh.

OR

Both

Director and every officer of the company who is in default shall be punishable with:

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 25 lakh.

Section 6Section 26- Matters to be stated in prospectus

Contravention of provisions relating to issue of a prospectus.

Old Penal ProvisionNew Penal Provision

Every person who is knowingly a party to the issue of such prospectus shall be punishable with:

Imprisonment:
Maximum- 3 years

OR

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 3 lakh.

OR

Both

Every person who is knowingly a party to the issue of such prospectus shall be punishable with:

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 3 lakh.

Section 7Section 40- Securities to be dealt with in stock exchanges

Default in complying with the provisions of this section relation to securities to be dealt with in stock exchanges.

Old Penal ProvisionNew Penal Provision

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 1 year

OR

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 3 lakh.

OR

Both

Every officer of the company who is in default shall be punishable with:

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 3 lakh.

Section 14Section 68- Power of company to purchase its own securities

If a company makes any default in complying with the provisions of this section or any regulation made by SEBI.

Old Penal ProvisionNew Penal Provision

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 3 years

OR

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 3 lakh.

OR

Both

Every officer of the company who is in default shall be punishable with:

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 3 lakh.

Section 24Section 128- Books of account, etc., to be kept by company

If MD, WTD in charge of finance, CFO or any other person of a company charged by the Board with the duty of complying with the provisions of this section, contravenes the provisions of the section.

Old Penal ProvisionNew Penal Provision

Such MD, WTD in charge of finance, CFO or such other person of the company shall be punishable with:

Imprisonment:
Maximum- 1 year

OR

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 5 lakh.

OR

Both

Such MD, WTD in charge of finance, CFO or such other person of the company shall be punishable with:

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 5 lakh.

Section 31Section 147- Punishment for contravention

If any of the provisions of sections 139 to 146 (both inclusive) (Audit and Auditors) is contravened.

Old Penal ProvisionNew Penal Provision

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 1 year

OR

Fine:
Minimum- Rs. 10 thousand;
Maximum- Rs. 1 lakh.

OR

Both

Every officer of the company who is in default shall be punishable with:

Fine:
Minimum- Rs. 10 thousand;
Maximum- Rs. 1 lakh.

Section 34Section 167- Vacation of office of director

If a person functions as a director even when he knows that the office of director held by him has become vacant on account of any of the disqualifications specified in this section.

Old Penal ProvisionNew Penal Provision

Such person shall be punishable with:

Imprisonment:
Maximum- 1 year

OR

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 5 lakh.

OR

Both

Such person shall be punishable with:

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 5 lakh.

Section 43Section 242- Powers of Tribunal

Contravention of the order of NCLT relating to alterations in MOA or AOA.

Old Penal ProvisionNew Penal Provision

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 6 months

OR

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 1 lakh.

OR

Both

Every officer of the company who is in default shall be punishable with:

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 1 lakh.

Section 44Section 243- Consequences of termination or modification of certain agreements

Any person or director of the company who knowingly acts as a managing director or other director or manager of a company in contravention of clause (b) of sub-section (1) or sub-section (1A) of this section.

Old Penal ProvisionNew Penal Provision

Such person and director shall be punishable with:

Imprisonment:
Maximum- 6 months

OR

Fine:
Maximum- Rs. 5 lakh.

OR

Both

Such person and director shall be punishable with:

Fine:
Maximum- Rs. 5 lakh.

Section 49Section 347- Disposal of books and papers of company

If any person acts in contravention of any rule framed or an order made under sub-section (3) of this section.

Old Penal ProvisionNew Penal Provision

Such person shall be punishable with:

Imprisonment:
Maximum- 6 months

OR

Fine:
Maximum- Rs. 50 thousand.

OR

Both

Such person shall be punishable with:

Fine:
Maximum- Rs. 50 thousand.

Section 54Section 392- Punishment for contravention

If a foreign company contravenes the provisions of Chapter XXII relating to ‘Companies Incorporated outside India’.

Old Penal ProvisionNew Penal Provision

Every officer of the foreign company who is in default shall be punishable with:

Imprisonment:
Maximum- 6 months

OR

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 5 lakh.

OR

Both

Every officer of the foreign company who is in default shall be punishable with:

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 5 lakh.

Section 61Section 441- Compounding of certain offences

If any officer or other employee of the company who fails to comply with any order made by NCLT or RD under this section.

Old Penal ProvisionNew Penal Provision

Such officer or employee shall be punishable with:

Imprisonment:
Maximum-6 months

OR

Fine:
Maximum- Rs. 1 lakh.

OR

Both

Such officer or employee shall be punishable with:

Fine:
Maximum- twice the amount provided in the corresponding section in which punishment for such offence is provided.

Penal provisions removed
Section 8Section 48- Variation of shareholders’ rights

Default in complying with the provisions relating to variation of shareholders’ rights.

Old Penal Provision (now omitted)

Company shall be punishable with:

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 5 lakh.

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 6 months

OR

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 5 lakh.

OR

Both

Section 10Section 59- Rectification of register of members

Default in complying with the order of NCLT relating to rectification of register of members.

Old Penal Provision (now omitted)

Company shall be punishable with:

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 5 lakh.

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 1 year

OR

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 3 lakh.

OR

Both

Section 13Section 66- Reduction of share capital

If a company fails to publish the confirmation order of the reduction of share capital by the Tribunal.

Old Penal Provision (now omitted)

Company shall be punishable with:

Fine:
Minimum- Rs. 5 lakh;
Maximum- Rs. 25 lakh.

Section 15Section 71- Debentures

Default in complying with the order of Tribunal relating to redemption of debentures.

Old Penal Provision (now omitted)

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 3 years

OR

Fine:
Minimum- Rs. 2 lakh;
Maximum- Rs. 5 lakh.

OR

Both

Section 46Section 284- Promoters, directors, etc., to cooperate with Company Liquidator

Where any person, without reasonable cause, fails to cooperate with the company liquidator under this section.

Old Penal Provision (now omitted)

Such person shall be punishable with:

Imprisonment:
Maximum- 6 months

OR

Fine:
Maximum- Rs. 50 thousand.

OR

Both

Section 47Section 302- Dissolution of company by Tribunal

If the Company Liquidator makes a default in forwarding a copy of the order to the Registrar within the period specified therein.

Old Penal Provision (now omitted)

Such Company Liquidator shall be punishable with:

Fine:
Maximum- Rs. 5,000 for every day during which the default continues.

Section 48Section 342- Prosecution of delinquent officers and members of company

If a person fails or neglects to give assistance required under this section.

Old Penal Provision (now omitted)

Such person shall be liable to pay:

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 1 lakh.

Section 50Section 348- Company Liquidator to deposit monies into scheduled bank

If a Company Liquidator contravenes the provisions of this section.

Old Penal Provision (now omitted)

Such Company Liquidator shall be punishable with:

Fine:
Maximum- Rs. 5,000 for every day during which the failure continues.

If a Company Liquidator makes wilful default in filing the statement referred to in sub-section (1) of this section.

Old Penal Provision (now omitted)

Company Liquidator shall be punishable with:

Imprisonment:
Maximum- 6 months

OR

Fine:
Maximum- Rs. 1 lakh.

OR

Both

Section 51Section 356- Powers of Tribunal to declare dissolution of company void

If the Company Liquidator or the person fails to file the certified copy of the order with the Registrar under this section.

Old Penal Provision (now omitted)

Such Company Liquidator or the person shall be punishable with:

Fine:
Maximum- Rs. 10,000 for every day during which the failure continues.

Re-categorizing of offences from compoundable offences to in-house adjudication framework
Section 9Section 56- Transfer and transmission of securities

Where any default is made in complying with the provisions of this section.

Old Penal ProvisionNew Penal Provision

Company shall be punishable with:

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 5 lakh.

Every officer of the company who is in default shall be punishable with:

Fine:
Minimum- Rs. 10 thousand;
Maximum- Rs. 1 lakh.

Company and every officer of the company who is in default shall be liable to a penalty of Rs. 50 thousand.
Section 16Section 86- Punishment for contravention
 

If any company contravenes any provision of Chapter VI relating to Registration of Charges.

Old Penal ProvisionNew Penal Provision

Company shall be punishable with:

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 10 lakh.

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 6 months

OR

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 1 lakh.

OR

Both

Company shall be liable to a penalty of Rs. 5 lakh and every officer of the company who is in default shall be liable to a penalty of Rs. 50 thousand.
Section 17Section 88- Register of members, etc.

If a company does not maintain a register of members or debenture-holders or other security holders or fails to maintain them in accordance with the provisions of this section.

Old Penal ProvisionNew Penal Provision

Company shall be punishable with:

Fine:
Minimum: Rs. 50 thousand;
Maximum: Rs. 3 lakh and where the failure is a continuing one, with a further fine which may extend to Rs. 1,000 for every day, after the first during which the failure continues.

Every officer of the company who is in default shall be punishable with:

Fine:
Minimum: Rs. 50 thousand;
Maximum: Rs. 3 lakh and where the failure is a continuing one, with a further fine which may extend to Rs. 1,000 for every day, after the first during which the failure continues.

Company shall be liable to a penalty of Rs. 3 lakh and every officer of the company who is in default shall be liable to a penalty of Rs. 50 thousand.
Section 18Section 89- Declaration in respect of beneficial interest in any share
 

If any person fails, to make a declaration as required under this section.

Old Penal ProvisionNew Penal Provision

Such person shall be punishable with:

Fine:
Maximum- Rs. 5 thousand and where the failure is a continuing one, with a further fine which may extend to Rs. 1,000 for every day after the first during which the failure continues.

Such person shall be liable to a penalty of Rs. 50 thousand and in case of continuing failure, with a further penalty of Rs. 200 for each day after the first during which such failure continues, subject to a maximum of Rs. 5 lakh.

If a company, required to file a return under this section, fails to do so before the expiry of the time specified.

Old Penal ProvisionNew Penal Provision

Company shall be punishable with:

Fine:
Minimum- Rs. 500;
Maximum- Rs. 1,000 and where the failure is a continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the failure continues;

Every officer of the company who is in default shall be punishable with:

Fine:
Minimum- Rs. 500;
Maximum- Rs. 1,000 and where the failure is a continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the failure continues;

Company and every officer of the company who is in default shall be liable to a penalty of Rs. 1,000 for each day during which such failure continues, subject to a maximum of Rs. 5 lakh in the case of a company and Rs. 2 lakh in case of an officer who is in default.
Section 19Section 90- Register of significant beneficial owners in a company
 

If any person fails to make a declaration of SBO as required under this section.

Old Penal ProvisionNew Penal Provision

Such person shall be punishable with:

Fine:
Minimum: Rs. 1 lakh;
Maximum: Rs. 10 lakh and where the failure is a continuing one, with a further fine which may extend to Rs. 1,000 for every day after the first during which the failure continues.

Such person shall be liable to a penalty of Rs. 50 thousand and in case of continuing failure, with a further penalty of Rs. 1,000 for each day after the first during which such failure continues, subject to a maximum of Rs. 2 lakh.

If a company, required to maintain register or file the information or required to take necessary steps under this section, fails to do so or denies inspection as provided therein.

Old Penal ProvisionNew Penal Provision

Company shall be punishable with:

Fine:
Minimum: Rs. 10 lakh;
Maximum: Rs. 50 lakh and where the failure is a continuing one, with a further fine which may extend to Rs. 1,000 for every day after the first during which the failure continues.

Every officer of the company who is in default shall be punishable with:

Fine:
Minimum: Rs. 10 lakh;
Maximum: Rs. 50 lakh and where the failure is a continuing one, with a further fine which may extend to Rs. 1,000 for every day after the first during which the failure continues.

Company shall be liable to a penalty of Rs. 1 lakh and in case of continuing failure, with a further penalty of Rs. 500 for each day, after the first during which such failure continues, subject to a maximum of Rs. 5 lakh and every officer of the company who is in default shall be liable to a penalty of Rs. 25 thousand and in case of continuing failure, with a further penalty of Rs. 200 for each day, after the first during which such failure continues, subject to a maximum of Rs. 1 lakh.
Section 20Section 92- Annual return

If a company secretary in practice certifies the annual return otherwise than in conformity with the requirements of this section or the rules made thereunder.

Old Penal ProvisionNew Penal Provision

Such company secretary in practice shall be punishable with:

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 5 lakh.

Such company secretary in practice shall be liable to a penalty of Rs. 2 lakh.
Section 21Section 105- Proxies

If for the purpose of any meeting of a company, invitations to appoint as proxy a person or one of a number of persons specified in the invitations are issued at the company’s expense to any member entitled to have a notice of the meeting sent to him and to vote thereat by proxy.

Old Penal ProvisionNew Penal Provision

Every officer of the company who knowingly issues the invitations as aforesaid or willfully authorises or permits their issue shall be punishable with:

Fine:
Maximum- Rs. 1 lakh.

Every officer of the company who issues the invitation as aforesaid or authorises or permits their issue shall be liable to a penalty of Rs. 50 thousand.
Section 26Section 134- Financial statement, Board’s report, etc.

If a company fails to comply with the provisions regarding signing of financial statement and contents & signing of Board’s Report.

Old Penal ProvisionNew Penal Provision

Company shall be punishable with:

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 25 lakh.

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 3 years

OR

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 5 lakh.

OR

Both

Company shall be liable to a penalty of Rs. 3 lakh and every officer of the company who is in default shall be liable to a penalty of Rs. 50 thousand.
Section 30Section 143- Powers and duties of auditors and auditing standards

If any auditor, cost accountant or company secretary in practice does not comply with the provisions regarding reporting of fraud.

Old Penal ProvisionNew Penal Provision

Such professional shall be punishable with:

Fine:
Minimum- Rs. 1 Lakh;
Maximum- Rs. 25 lakh.

Such professional shall be liable to a penalty:

  • In case of a listed company: Rs. 5 lakh;
  • In case of any other company: Rs. 1 lakh.
Section 35Section 172- Punishment

If a company contravenes any of the provisions of Chapter XI and for which no specific punishment is provided therein.

Old Penal ProvisionNew Penal Provision

Company shall be punishable with:

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 5 lakh.

Every officer of the company who is default shall be punishable with:

Fine:
Minimum- Rs. 50 thousand;
Maximum- Rs. 5 lakh.

Company and every officer of the company who is in default shall be liable to a penalty of Rs. 50 thousand, and in case of continuing failure, with a further penalty of Rs. 500 for each day during which such failure continues, subject to a maximum of Rs. 3 lakh in case of a company and Rs. 1 lakh in case of an officer who is in default.
Section 36Section 178- Nomination and Remuneration Committee and Stakeholders Relationship Committee

In case of any contravention of the provisions of sections 177 and 178.

Old Penal ProvisionNew Penal Provision

Company shall be punishable with:

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 5 lakh.

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 1 year

OR

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 1 lakh.

OR

Both

Company shall be liable to a penalty of Rs. 5 lakh and every officer of the company who is in default shall be liable to a penalty of Rs. 1 lakh.
Section 37Section 184- Disclosure of interest by director

If a director of the company does not disclose the nature of his interest under this section.

Old Penal ProvisionNew Penal Provision

Such director shall be punishable with:

Imprisonment:
Maximum- 1 year

OR

Fine:
Maximum- Rs. 1 lakh.

OR  

Both

Such director shall be liable to a penalty of Rs. 1 lakh.
Section 38Section 187- Investments of company to be held in its own name

If a company contravenes the provisions of this section.

Old Penal ProvisionNew Penal Provision

Company shall be punishable with:

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 25 lakh.

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 6 months

OR

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 1 lakh.

OR

Both

Company shall be liable to a penalty of Rs. 5 lakh and every officer of the company who is in default shall be liable to a penalty of Rs. 50 thousand.
Section 39Section 188- Related party transactions

Any director or any other employee of a company, who had entered into or authorised the contract or arrangement in violation of the provisions of this section.

Old Penal ProvisionNew Penal Provision

In case of listed company

Such director or employee shall be punishable with:

Imprisonment:
Maximum- 1 year

OR

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 5 lakh.

OR

Both

In case of company other than listed

Such director or employee shall be punishable with:

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 5 lakh.

In case of listed company
Such director or employee shall be liable to a penalty of Rs. 25 lakh.
In case of listed company
Such director or employee shall be liable to a penalty of Rs. 5 lakh.
Section 41Section 204- Secretarial audit for bigger companies

If a company or any officer of the company or the company secretary in practice, contravenes the provisions of this section.

Old Penal ProvisionNew Penal Provision

Company, every officer of the company or the company secretary in practice, who is in default, shall be punishable with:

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 5 lakh.

Company, every officer of the company or the company secretary in practice, who is in default, shall be liable to a penalty of Rs. 2 lakh.
Section 42Section 232- Merger and amalgamation of companies

If a transferor company or a transferee company contravenes the provisions of this section.

Old Penal ProvisionNew Penal Provision

Such transferor company or the transferee company, as the case may be, shall be punishable with:

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 25 lakh.

Every officer of such transferor or transferee company who is in default shall be punishable with:

Imprisonment:
Maximum- 1 year

OR

Fine:
Minimum- Rs. 1 lakh;
Maximum- Rs. 3 lakh.

OR

Both

Company and every officer of the company who is in default shall be liable to a penalty of Rs. 20 thousand, and where the failure is a continuing one, with a further penalty of Rs. 1,000 for each day after the first during which such failure continues, subject to a maximum of Rs. 3 lakh.
Section 42Section 247- Valuation of registered valuers

If a valuer contravenes the provisions of this section or the rules made thereunder.

Old Penal ProvisionNew Penal Provision

Such valuer shall be punishable with:

Fine:
Minimum: Rs. 25 thousand;
Maximum- Rs- 1 lakh.

Such valuer shall be liable to a penalty of Rs. 50 thousand.
Section 57Section 405- Power of Central Government to direct companies to furnish information or statistics

If any company fails to comply with an order made under this section, or knowingly furnishes any information or statistics which is incorrect or incomplete in any material respect.

Old Penal ProvisionNew Penal Provision

Company shall be punishable with:

Fine:
Maximum- Rs. 25 thousand.

Every officer of the company who is in default shall be punishable with:

Imprisonment:
Maximum- 6 months

OR

Fine:
Minimum- Rs. 25 thousand;
Maximum- Rs. 3 lakh.

OR

Both

Company and every officer of the company who is in default shall be liable to a penalty of Rs. 20 thousand and in case of continuing failure, with a further penalty of Rs. 1,000 for each day after the first during which such failure continues, subject to a maximum of Rs. 3 lakh.
Section 63Section 450- Punishment where no specific penalty or punishment is provided

If a company or any officer of a company or any other person contravenes any of the provisions of this Act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act.

Old Penal ProvisionNew Penal Provision

Company and every officer of the company who is in default or such other person shall be punishable with:

Fine:
Maximum- Rs. 10,000 and where the contravention is continuing one, with a further fine which may extend to Rs. 1,000 for every day after the first during which the contravention continues.

Company and every officer of the company who is in default or such other person shall be liable to a penalty of Rs. 10 thousand and in case of continuing contravention, with a further penalty of Rs. 1,000 for each day after the first during which the contravention continues, subject to a maximum of Rs. 2 lakh in case of company and Rs. 50 thousand in case of an officer who is in default or any other person.
Other Amendments
Section 31Section 147- Punishment for contraventionThe reference of section 143 mentioned in section 147 has been omitted as punishment for default of section 143 is already provided in section 143 itself.

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