Penalties for Contravention of Directions of Authority

(1) If a person violates the directions of the Authority, such person shall be punishable to fine, which may extend to Rs. 50,000 and in case of second or subsequent contravention, to fine, which may extend to INR One Lakh only. In case of continuing contravention, with an additional fine, which may extend to Rs. 5,000 for each day during which such contravention continues after the first contravention. (2) Notwithstanding anything contained in sub-section (1), where an contravention under this Act has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, or other officer of the company, such director, manager, or other officer, as the case may be, shall also be deemed to be guilty of the contravention 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 specified in this Act, if he proves that the contravention was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such contravention.