LegalCrystal – Blog

CHAPTER V

DUTIES OF DIRECTOR GENERAL

41. Director-General to investigate contraventions -

1)   The Director General  shall,  when  so  directed  by  the  Commission,  assist  the Commission  in investigating into any contravention of the  provisions of this Act or any rules or regulations made there under.

2)   The  Director General shall have all the powers as are  conferred upon the Commission under sub-section (2) of section 36.

3)  Without prejudice to the provisions of sub-section (2),  sections 240 and 240A of the Companies Act, 1956 (1 of 1956), so far as may be, shall  apply  to an investigation made by the Director General or  any other  person  investigating under his authority as they apply  to  an  inspector appointed under that Act.

CHAPTER VI

PENALTIES

42. Contravention of orders of Commission -

1)   Without prejudice to the provisions of this Act, if any person contravenes,civil prison for a term which  may  extend to one year, unless in the meantime the  Commission directs  his release  and he shall also be liable to a penalty not exceeding rupees ten lakhs. without  any reasonable  ground,  any order of the Commission, or any condition or restriction subject  to which any approval,  sanction  direction  or exemption  in relation to any matter has been accorded, given, made or  granted  under this Act or fails to pay the penalty imposed under this Act,  he  shall  be liable to be detained in

2)   The  Commission may, while making an order under this Act,  issue such directions to any person or authority, not inconsistent with this Act,   as   it  thinks  necessary  or  desirable,   for   the   proper implementation  or execution of the order, and any person who  commits breach  of,  or  fails to comply with, any obligation imposed  on  him  under  such direction, may be ordered by the Commission to be detained in  civil  prison  for  a term not exceeding one year  unless  in  the to  a penalty not exceeding rupees ten lakhs.  Meantime the Commission directs his release and he shall also be liable

43. Penalty for failure to comply with directions of Commission and Director-

General.-If any person fails to comply with a direction given by-

a)   the Commission under sub-section (5) of section 36; or   b)   the  Director  General  while exercising powers  referred  to  in sub-section (2) of section 41, the  Commission  shall impose on such person a penalty of  rupees  one lakh for each day during which such failure continues.

44. Penalty for making false statement or omission to furnish material information.-If any person, being a party to a combination -

a)   makes  a statement which is false in any material particular,  or knowing it to be false;  or

b)   omits to state any material particular knowing it to be material, such  person shall be liable to a penalty which shall not be less than rupees fifty lakhs but which may extend to rupees one crore, as may be determined by the Commission.

45. Penalty for offences in relation to furnishing of information -

1)   Without prejudice to the provisions of section 44, if any person, who furnishes or is required to furnish under this Act any particulars, documents or any information,-

(a)  makes any statement or furnishes any document which he knows  or has reason to believe to be false in any material particular;  or

(b)  omits to state any material fact knowing it to be material;  or

(c)  willfully alters, suppresses or destroys any document  which  is required to be furnished as aforesaid, the  Commission shall impose on such person a penalty which may extend to rupees ten lakhs.

2)   Without prejudice to  the provisions of  sub-section (1), the Commission may also pass such other order as it deems fit.

46. Power to impose lesser penalty -

The Commission may, if  it  is satisfied  that  any producer, seller, distributor, trader or  service provider  included  in any cartel, which is alleged to  have  violated section  3,  has  made a full and true disclosure in respect  of  the alleged  violations  and  such disclosure is vital, impose  upon  such producer,  seller,  distributor, trader or service provider  a  lesser penalty  as it may deem fit, than leviable under this Act or the rules or the regulations:

Provided that lesser penalty shall not be imposed by the Commission in cases  where proceedings for the violation of any of the provisions of this  Act or the rules or the regulations have been instituted or  any investigation  has  been directed to be made under section  26 before making of such disclosure:  Provided further that lesser penalty shall  be  imposed  by the Commission only in respect of a producer,  seller,  distributor,  trader  or service provider included in the cartel,  who first made the full, true and vital disclosures under this section:

Provided  also  that the Commission may, if it is satisfied that  such producer,  seller, distributor, trader or service provider included in the cartel had in the course of proceedings,-

a)   not  complied with the condition on which the lesser penalty  was imposed by the Commission;  or

b)   had given false evidence;

c)   the disclosure made is not vital, and  thereupon  such producer, seller, distributor, trader or  service provider may be tried for the offence with respect to which the lesser penalty  was  imposed  and shall also be liable to the  imposition  of penalty  to which such person has been liable, had lesser penalty  not been imposed.

45. Penalty for offences in relation to furnishing of information -

1)   Without prejudice to the provisions of section 44, if any person, who furnishes or is required to furnish under this Act any particulars, documents or any information,-

(a)  makes any statement or furnishes any document which he knows  or has reason to believe to be false in any material particular;  or

(b)  omits to state any material fact knowing it to be material;  or

(c)  willfully alters, suppresses or destroys any document  which  is required to be furnished as aforesaid, the  Commission shall impose on such person a penalty which may extend to rupees ten lakhs.

2)   Without prejudice to  the provisions of  sub-section (1), the Commission may also pass such other order as it deems fit.

46. Power to impose lesser penalty -

The Commission may, if  it  is satisfied  that  any producer, seller, distributor, trader or  service provider  included  in any cartel, which is alleged to  have  violated section  3,  has  made a full and true disclosure in respect  of  the alleged  violations  and  such disclosure is vital, impose  upon  such producer,  seller,  distributor, trader or service provider  a  lesser penalty  as it may deem fit, than leviable under this Act or the rules or the regulations:

Provided that lesser penalty shall not be imposed by the Commission in cases  where proceedings for the violation of any of the provisions of this  Act or the rules or the regulations have been instituted or  any investigation  has  been directed to be made under section  26  before making of such disclosure:  Provided further that lesser penalty shall  be  imposed  by the Commission only in respect of a producer,  seller,  distributor,  trader  or service provider included in the cartel,  who first made the full, true and vital disclosures under this section:

Provided  also  that the Commission may, if it is satisfied that  such producer,  seller, distributor, trader or service provider included in the cartel had in the course of proceedings,-