Chapter IV OFFENCES AND PENALTIES

Contravention of any of the provisions of sections 3 and 4 shall be an offence.

1. (1) Any person who contravenes the provisions of sub-section (1) or (2) of section 3 shall, on conviction, be punished with imprisonment for a term which may extend to one year or with a fine, which shall not be less than one lakh rupees but which may extend to five lakh rupees or with both.
2. (2) Any person or an Educational Institution, who contravenes the provisions of sub-section (3) of section 3, shall, on conviction, be punished with a fine, which shall not be less than one lakh rupees but which may extend to five lakh rupees.
3. (3) Any person or an Educational Institution who contravens the provisions of section 4, shall, on conviction, be punished with a fine, which shall not be less than fifty thousand rupees but which may extend to one lakh rupees.

1. (1) Where an offence under this Act has been committed by a company, every person, who, at the time when 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, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act 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, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded and punished accordingly. Explanation.- For the purposes of this section,-
   • (a) "company" means a body corporate and includes a firm or other association of persons or body of individuals, whether incorporated or not; and
   • (b) "Director" in relation to a firm, means a partner in the firm, and in relation to any association of persons or body of individuals, means any member controlling the affairs thereof.