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

Meghna Steel Ltd failed to notify a combination and the Commission imposed a penalty under section 43A. Which statement is correct about the sum realised?

The penalty is credited to the Consolidated Fund of India under section 47. That section covers all sums realised as penalties and legal costs recovered by the Commission. The Commission does not keep them and they are not paid to competitors.

  1. AIt is credited to the Consolidated Fund of India under section 47Correct
  2. BIt is retained by the Commission for its administration
  3. CIt is paid to the competing enterprises affected
  4. DIt is credited to the Investor Education and Protection Fund

Explanation

Section 47 provides that all sums realised by way of penalties, and recovery of legal costs by the Commission, are credited to the Consolidated Fund of India. The Commission does not retain them and they are not paid to rivals.

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