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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Halcyon Ltd failed to give notice of a notifiable combination under section 6(2). The Commission proceeds under section 43A. Which statement about the maximum penalty is correct?

The Commission may impose a penalty extending up to one per cent of the combination's total turnover, assets or value of transaction under section 5(d), whichever is higher. It is not a fixed sum and not based on the lower figure.

  1. AIt may extend to 1% of the total turnover or assets or value of transaction, whichever is higherCorrect
  2. BIt may extend to 1% of the lower of turnover or assets
  3. CIt is a fixed amount of one crore rupees
  4. DIt may extend to 10% of the value of transaction

Explanation

Section 43A allows a penalty up to one per cent of the total turnover or assets or the value of transaction referred to in section 5(d), whichever is higher, of the combination. The 'lower' option reverses the base, and fixed or 10% figures do not appear in the section.

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