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CS Professional · Intellectual Property Rights - Law and Practice · Biological Diversity

An adjudicating officer finds that Sundarban Agro Exports Ltd contravened section 7 of the Biological Diversity Act, 2002, and the damage caused is assessed at Rs 80 lakh. The firm's contravention also continues after the order. Which statement is correct under section 55?

Because damage of Rs 80 lakh exceeds the Rs 50 lakh ceiling, the penalty must be commensurate with the damage. Since the contravention continues, an additional penalty up to Rs 1 crore may also be imposed. The Rs 50 lakh figure is not an absolute cap.

  1. APenalty is capped at Rs 50 lakh regardless of the damage
  2. BPenalty must be commensurate with the damage caused since the damage exceeds Rs 50 lakh, and an additional penalty not exceeding Rs 1 crore may be imposed for continuing contraventionCorrect
  3. CPenalty is fixed at Rs 1 crore because the damage exceeds Rs 50 lakh
  4. DNo additional penalty may be imposed once a penalty commensurate with damage is fixed

Explanation

Section 55 says that where the damage caused exceeds the amount of penalty, the penalty shall be commensurate with the damage, and if the contravention continues, an additional penalty not exceeding one crore rupees may be imposed. So the Rs 50 lakh cap does not bind here, and the additional penalty is available.

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