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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Empowerment of the Company Secretary Profession

Rohan is convicted for the first time under Section 25 of the Company Secretaries Act, 1980 for using a name nearly resembling the Institute's name so as to deceive the public. Which punishment is within the statutory limits?

On first conviction under Section 25(2), the punishment is imprisonment up to six months, or fine of not less than Rs 1 lakh and up to Rs 5 lakh, or both. A Rs 3 lakh fine without imprisonment falls inside this range, whereas Rs 50,000 is below the statutory minimum.

  1. AFine of Rs 50,000 only
  2. BFine of Rs 3 lakh, with no imprisonmentCorrect
  3. CImprisonment of one year and fine of Rs 10 lakh
  4. DFine of Rs 1,000 only

Explanation

On first conviction, Section 25(2) allows imprisonment up to six months, or fine of at least Rs 1 lakh and up to Rs 5 lakh, or both. A Rs 3 lakh fine fits this range. Rs 50,000 is below the minimum, Rs 1,000 is the old pre-2022 style limit, and one year with Rs 10 lakh is the repeat-offence band.

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