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<h1>Compounding of offences allows a defaulter to pay to avoid prosecution when permitted by the competent authority.</h1> Compounding of an offence permits a person who committed a specified offence to be relieved of major legal consequences by paying a sum of money; the competent authority may accept such a monetary settlement to extinguish or prevent prosecution, and the power to compound may be exercised either before proceedings are initiated or after proceedings have commenced.