Compounding of offences

(1) The Authority may, in its direction, compound any offence under this Act or any regulations made there under which is prescribed as a compoundable offence by collecting from a person reasonably suspected of having committed the offence a sum not exceeding Rs. 5,000.

(2) On payment of such sum of money, no further proceedings shall be taken against that person in respect of the offence.

(3) The Authority may, with the approval of the Government, make regulations to prescribe the offences which may be compounded.

(4) All sums collected under this section shall be paid to the Authority.