Penalty reduction framework amended to allow a prescribed reduced rate, while keeping the ceiling at one-half of the penalty.

Section 446B of the Companies Act, 2013 is amended to revise the penalty formulation applicable under the provision. The existing wording, under which liability was limited to a penalty of not more than one-half of the penalty otherwise provided, is replaced with language stating that the liability shall be a penalty of one-half, or such percentage not exceeding one-half as may be prescribed, of the penalty. The amendment therefore introduces a prescribed flexibility in fixing the reduced penalty rate, while retaining the upper limit of one-half of the penalty.

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