Compounding of information technology contraventions permits settlement before or after adjudication, subject to penalty limits and repeat-offence restrictions.

Contraventions under the Information Technology Act, 2000 may be compounded before or after adjudication by the Controller, a specially authorised officer, or the adjudicating officer, subject to specified conditions. The compounding amount cannot exceed the maximum applicable penalty. Repeat or similar contraventions within three years of an earlier compounded contravention cannot be compounded, while later contraventions are treated as first contraventions. Compounding precludes further proceedings for the same contravention.

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