Compounding or withdrawal of proceedings

(1) The Director General or any person authorised in this behalf by him by general or special order may either before or after the institution of the proceedings, and for reasons to be recorded in writing, compound any offence made punishable by or under this Act or the rules made thereunder or withdraw from the proceedings. (2) When an offence has been compounded, the offender, if in custody, shall be discharged, and no further proceedings shall be taken against him in respect of the offence compounded.