Section 26. Penalties

26. Penalties. —[9] [(1)] If any person— (a) contravenes any provision of this Act, other than section 11 or section 13, or any rule made under this Act, or (b) in any report or return to be furnished under this Act, makes any statement which is false and which he knows to be false or does not believe to be true, or 1. Clause (xx) Omitted Act 4 of 2010, s. 15 (date to be notified). 2. Ins. by Act 21 of 1960, s. 3 (w.e.f. 1-11-1960). 3. Ins. by Act 4 of 2010, s. 15 (date to be notified). 4. Omitted by s. 15, ibid., for "or section 17" (date to be notified) . 5. Ins. by Act 18 of 2023, s. 2 and Schedule (w.e.f. 9-8-2024). 6. Subs. by Act 21 of 1960, s. 3, for sub-section (3) (w.e.f. 1-11-1960). 7. Subs. by Act 54 of 1982, s. 6 "two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid" (date to be notified). 8. Ins.by Act 4 of 2010, s. 16 (date to be notified). 9. Section 26 renumbered as sub-section (1) of thereof by Act 54 of 1954, s. 19 (w.e.f. 1-8-1955). (c) obstructs any officer of the Board in the discharge of any duty imposed on or entrusted to him by or under this Act, or (d) having the control or custody of any account book or other record, fails to produce such book or record when required by any authorised officer to do so, he shall be[1] [liable to penalty which may extend to fifty thousand rupees]. 2[(2) If the person committing any offence under sub-section (1) is a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (3) Notwithstanding anything contained in sub-section (2), where an offence under sub-section (1) has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director or manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation .—For the purposes of this section— (a) "company", means any body corporate, and includes a firm or other association of individuals; and (b) "director" in relation to a firm means a partner in the firm.] [3] [26A. Compounding of offences. —Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Act may, either before the institution of prosecution or with the permission of the Court after the institution of the prosecution, be compounded by the Board on payment to the Board such sum of money as does not exceed the value of the goods in respect of which contravention has been committed.] 4[26B. Adjudication of penalties.— (1) For the purposes of adjudging the penalties under sub-section (3) of Section 11 and Section 26, the Executive Director shall appoint the Secretary to the Board or any other officer authorised by the Central Government, as the case may be, to be an adjudicating officer for holding an inquiry and imposing penalty in the manner as may be prescribed, after giving any person concerned a reasonable opportunity of being heard. (2) Whoever is aggrieved by any order of the adjudicating officer may prefer an appeal to the Executive Director, within a period of sixty days from the date of receipt of such order in such form and manner as may be prescribed. (3) An appeal may be admitted after the expiry of the period of sixty days if the appellant satisfies the Executive Director that he had sufficient cause for not preferring the appeal within that period. (4) No appeal shall be disposed of unless the appellant has been given a reasonable opportunity of being heard. (5) An appeal under sub-section (2) shall be disposed of within sixty days from the date of filing. (6) The amount of penalty imposed under sub-section (1), if not paid, may be recovered as an arrear of land revenue.]