Penalty regime for continuing default replaces fine-based punishment under companies law, with a capped daily escalation. Section 453 of the Companies Act, 2013 is amended to replace the existing fine-based punishment with a civil penalty structure. The substituted provision ... Summary
Penalty regime for continuing default replaces fine-based punishment under companies law, with a capped daily escalation.
Section 453 of the Companies Act, 2013 is amended to replace the existing fine-based punishment with a civil penalty structure. The substituted provision imposes a penalty of one lakh rupees for the initial failure and a further penalty of five hundred rupees for each day of continuing failure after the first day, subject to an overall maximum of five lakh rupees.
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