CMA Final · Corporate and Economic Laws · Inspection, Inquiry and Investigation
An officer of a company that is under investigation knowingly gives a false explanation to the inspector. How is he punishable under the Act?
A person who gives an explanation that is false, or that he knows to be false, during inspection, inquiry or investigation is punishable for fraud under section 447. Section 229 treats such falsification, destruction or false entries with this severe consequence.
- AAs for fraud in the manner provided in section 447Correct
- BBy fine only, up to Rs 25,000
- CBy disqualification for one year without any penalty
- DAs for default under section 207(4) only
Explanation
Section 229(c) covers a false explanation made knowingly, along with destruction or falsification of documents and false entries. The person is punishable for fraud as provided in section 447.
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