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CS Executive · Economic, Commercial and Intellectual Property Laws · Overseas Direct Investment

An Indian company's overseas investment contravention is found, and the amount involved is not quantifiable. The contravention continues for several days. Under Section 13(1), what is the penalty position upon adjudication?

Where the amount is not quantifiable, the penalty can be up to two lakh rupees, and for a continuing contravention a further penalty up to five thousand rupees applies for every day after the first day. The two-thousand-rupee daily figure belongs to authorised persons under Section 11(3).

  1. AUp to two lakh rupees, plus up to five thousand rupees for every day after the first day of continuing contraventionCorrect
  2. BUp to thrice the sum involved, plus up to two thousand rupees per day
  3. CUp to ten thousand rupees, plus up to two thousand rupees per day
  4. DUp to two lakh rupees, plus up to five thousand rupees for every day including the first day

Explanation

Section 13(1) provides for a penalty up to thrice the sum involved where quantifiable, or up to two lakh rupees where not quantifiable. For a continuing contravention a further penalty up to five thousand rupees applies for every day after the first day. The option with two thousand rupees confuses this with Section 11(3), and the last option wrongly counts the first day.

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