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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Data Governance

Kavach Net Services, an intermediary, intentionally refuses to extend facilities to an agency authorised under Section 69B(1). Which is the correct consequence under Section 69B(4) as it now stands?

An intermediary who intentionally or knowingly contravenes the duty to assist is punishable under Section 69B(4) with imprisonment up to one year, or fine up to one crore rupees, or both. The older three years plus mandatory fine was substituted by Act 18 of 2023 from 30-11-2023.

  1. AImprisonment up to three years and also a mandatory fine
  2. BImprisonment up to one year, or fine up to one crore rupees, or bothCorrect
  3. COnly a warning from the Central Government
  4. DFine up to one lakh rupees only, with no imprisonment

Explanation

Section 69B(4), as substituted by Act 18 of 2023 with effect from 30-11-2023, provides imprisonment up to one year or a fine up to one crore rupees, or both. The earlier wording of three years' imprisonment and also fine has been replaced, so the first option is outdated.

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