Punishment for false verification of loan utilisation

Whoever, being under a duty to verify and report proper utilization of a loan or subsidy falsely reports, verifies or testifies to be proper utilization thereof, with reference to the purpose for which it was sanctioned or advanced, when in fact it was not so utilized fully, or was utilised only partly, or was not utilised at all, in relation to that purpose, unless it was diverted to some other purpose with the prior sanction of authority which sanctioned or advanced the loan or subsidy shall be punished with imprisonment of either description which may extend to one year or with fine or both.