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CS Professional · Compliance Management, Audit and Due Diligence · Non-Compliances, Penalties and Adjudications

Kaveri Foods Pvt Ltd had an offence compounded on 10 March 2024. On 5 January 2026 it committed a similar offence. Another officer asks whether it can be compounded again. What is the position?

It cannot be compounded. Section 441 bars compounding of a similar offence committed within three years of an earlier compounding, and here the second offence came less than two years after the first. The authority that compounded earlier and any doubling of the fine are irrelevant.

  1. AIt cannot be compounded, because it was committed within three years of the earlier compoundingCorrect
  2. BIt can be compounded, but only by the Tribunal
  3. CIt can be compounded, as the earlier compounding was by the Regional Director
  4. DIt can be compounded only if the fine is doubled

Explanation

Section 441(2) bars compounding of an offence committed within three years of the date on which a similar offence was compounded. 10 March 2024 to 5 January 2026 is under three years. The identity of the compounding authority does not matter, so the other options fail.

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