Chapter VII OFFENCES AND PENALTIES

Whoever, fails to comply with any direction of the Central Authority under sections 20 and 21, shall be punished with imprisonment for a term which may extend to six months or with fine which may extend to Rs. 20,00,000, or with both.

Any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of consumers shall be punished with imprisonment for a term which may extend to two years and with fine which may extend to Rs. 10,00,000; and for every subsequent offence, be punished with imprisonment for a term which may extend to five years and with fine which may extend to Rs. 50,00,000.

(1) Whoever, by himself or by any other person on his behalf, manufactures for sale or stores or sells or distributes or imports any product containing an adulterant shall be punished, if such act— (a) does not result in any injury to the consumer, with imprisonment for a term which may extend to six months and with fine which may extend to Rs. 1,00,000; (b) causing injury not amounting to grievous hurt to the consumer, with imprisonment for a term which may extend to one year and with fine which may extend to Rs. 3,00,000; (c) causing injury resulting in grievous hurt to the consumer, with imprisonment for a term which may extend to seven years and with fine which may extend to Rs. 5,00,000; and (d) results in the death of a consumer, with imprisonment for a term which shall not be less than seven years, but which may extend to imprisonment for life and with fine which shall not be less than Rs. 10,00,000. (2) The offences under clauses (c) and (d) of sub-section (1) shall be cognizable and non-bailable. (3) Notwithstanding the punishment under sub-section (1), the court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the time being in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licence. Explanation.—For the purposes of this section,— (a) “adulterant” means any material including extraneous matter which is employed or used for making a product unsafe; (b) “grievous hurt” shall have the same meaning as assigned to it in section 320 of the Indian Penal Code (45 of 1860).

(1) Whoever, by himself or by any other person on his behalf, manufactures for sale or stores or sells or distributes or imports any spurious goods shall be punished, if such act— (a) causing injury not amounting to grievous hurt to the consumer, with imprisonment for a term which may extend to one year and with fine which may extend to Rs. 3,00,000; (b) causing injury resulting in grievous hurt to the consumer, with imprisonment for a term which may extend to seven years and with fine which may extend to Rs. 5,00,000; (c) results in the death of a consumer, with imprisonment for a term which shall not be less than seven years, but may extend to imprisonment for life and with fine which shall not be less than Rs. 10,00,000. (2) The offences under clauses (b) and (c) of sub-section (1) shall be cognizable and non-bailable. (3) Notwithstanding the punishment under sub-section (1), the court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the time being in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licence.

No cognizance shall be taken by a competent court of any offence under sections 88 and 89 except on a complaint filed by the Central Authority or any officer authorised by it in this behalf.

The Director General or any other officer, exercising powers under section 22, who knows that there are no reasonable grounds for so doing, and yet— (a) searches, or causes to be searched any premises; or (b) seizes any record, register or other document or article, shall, for every such offence, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to Rs. 10,000 or with both.