Compounding of offences.

(1) Any offence punishable under this Act, - (a) in the case of a manufacturer, before the institution of the prosecution, may be compounded, on payment of an amount of not less than rupees fifty thousand for credit to the concerned local authority: Provided that the compounding amount shall not be less than rupees one lac for any subsequent offence; (b) in the case of any user, before the institution of the prosecution, may be compounded, on payment of an amount of not less than rupees two thousand for credit to the concerned local authority: Provided that compounding amount shall not be less than rupees four thousand for any subsequent offence. (2) Where any offence has been compounded under sub-section (1), no proceedings shall be taken against the offender, in respect of the offence so compounded, and if the offender is in custody, he shall be discharged immediately.