False statements in pre packaged insolvency pleadings trigger criminal liability and penal sanctions under the Code.

Providing information in the pre packaged insolvency application under section 54C, or in the list of claims or preliminary information memorandum under section 54G, that is false in material particulars or omitting material facts, or knowingly authorising such conduct, is punishable; deliberate contravention by a director or partner of Chapter III A also attracts penal liability. An application is materially false if the true or non omitted facts would have determined the existence of a default under the Code.

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