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CMA Final · Corporate and Economic Laws · Specific Legal Provisions related to MSME Sector

Under the MSME Development Act, 2006, a buyer contravenes the provisions of section 22 (the requirement relating to specifying the amount of interest in the annual statement of accounts). What punishment does section 27 prescribe for the buyer?

A buyer who contravenes section 22 is punishable under section 27(2) with a fine that shall not be less than rupees ten thousand. The lower graded fines of up to one thousand and up to ten thousand apply to different contraventions, namely section 8(1) and section 26(2).

  1. AFine which may extend to rupees one thousand
  2. BFine which shall not be less than rupees ten thousandCorrect
  3. CFine which shall not be less than rupees one thousand but may extend to rupees ten thousand
  4. DImprisonment only, without any fine

Explanation

Section 27(2) states that a buyer who contravenes section 22 is punishable with fine which shall not be less than rupees ten thousand. The Rs 1,000 and Rs 1,000-10,000 fine structure in section 27(1) applies to contraventions of section 8(1) or 26(2), not section 22.

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