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CMA Final · Corporate and Economic Laws · Investment and Loans

Under Section 186, a company that contravenes the provisions of the section, including the layer restriction, is punishable with a fine of:

The company is punishable with a fine of not less than Rs 25,000 but which may extend to Rs 5 lakh under Section 186(13). Officers in default face a separate penalty of imprisonment up to two years and a fine between Rs 25,000 and Rs 1 lakh.

  1. Anot less than Rs 25,000 but up to Rs 5 lakhCorrect
  2. Bnot less than Rs 1 lakh but up to Rs 10 lakh
  3. Cnot less than Rs 10,000 but up to Rs 1 lakh
  4. Dup to Rs 25,000 only

Explanation

Section 186(13) provides that the company shall be punishable with fine not less than twenty-five thousand rupees but extending to five lakh rupees. Officers in default face imprisonment up to two years and fine of Rs 25,000 to Rs 1 lakh, which is a separate penalty.

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