Compounding of offences-

(1) The Chief Executive Officer or any officer of the Authority or Commission authorised by him may, at his discretion, compound any offence under this Act or any regulations made thereunder which is prescribed as a compoundable offence by collecting from a person reasonably suspected of having committed the offence a sum not exceeding the lower of the following: (a) one half of the amount of the maximum fine that is prescribed for the offence; (b) Rs. 20,000. (2) On payment of such sum of money, no further proceedings shall be taken against that person in respect of the offence. (3) All sums collected under this section shall be paid into the Consolidated Fund of the State.