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CMA Final · Corporate and Economic Laws · Inspection, Inquiry and Investigation

Expenses of an investigation by an inspector appointed by the Central Government are, in the first instance, defrayed by the Central Government. Which person is liable to reimburse them if the inspector's report leads to no prosecution under section 224?

Where no prosecution follows under section 224, the company, body corporate, managing director or manager dealt with by the inspector's report reimburses the expenses, to the extent the Central Government directs. Applicants for the investigation also pay where the inspector was appointed under section 213.

  1. AAny company, body corporate, managing director or manager dealt with by the report, to the extent the Central Government directsCorrect
  2. BOnly the inspector who conducted the investigation
  3. CThe Tribunal, from its own funds
  4. DNo one, as the Central Government bears them finally

Explanation

Under section 225(1)(c), unless a prosecution is instituted under section 224, the company, body corporate, managing director or manager dealt with by the report, and the applicants where the inspector was appointed under section 213, reimburse to the extent the Central Government directs. The Government does not bear the cost finally.

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