Industrial Enterprises Act 2076

Chapter-8 Provisions Relating to Punishment and Appeal

Section 43: Punishment
1) If any person operates an industry without registration under section 3, the industry registration body may require immediate closure of the industry and impose the following fine:
(a) five thousand rupees, if it is a micro-industry,
(b) twenty-five thousand rupees if it is a cottage and small industry,
(c) fifty thousand rupees if it is a medium industry,
(d) one hundred thousand rupees if it is a large industry.
2) If an industry acts contrary to its objective, the Ministry may, on the recommendation of the industry registration body, impose the following fine on the industry:
(a) a fine not exceeding two thousand rupees, if it is a micro-enterprise,
(b) a fine of fifty thousand rupees if it is a cottage and small industry,
(c) a fine not exceeding one hundred thousand rupees, if it is a medium industry,
(d) a fine not exceeding five hundred thousand rupees, if it is a large industry.
3) If an industry fails to give information on the commencement of its operation or commercial production or transaction within the period specified under section 9, the Ministry shall, upon the recommendation of the industry registration body, impose the following fine on the industry:
(a) a fine not exceeding two thousand rupees every six months, if it is a micro-industry,
(b) a fine of ten thousand rupees every six months if it is a cottage and small industry,
(c) a fine not exceeding twenty-five thousand rupees for every six months, if it is a medium or large industry.
4) If an industry shifts its location without obtaining approval under section 11 or increases its capital, enhances its capacity or adds or changes its objective without obtaining approval authorisation under section 12, the Ministry may, on the recommendation of the industry registration body, impose the following fine on the industry:
(a) a fine not exceeding five thousand rupees, if it is a micro-industry,
(b) a fine of twenty-five thousand to fifty thousand rupees if it is a cottage and small industry,
(c) a fine of one hundred thousand to three hundred thousand rupees if it is a medium or large industry,
(d) hundred percent additional fine in addition to the fine imposable under clause (b) or (c) if it is an industry requiring permission under section 8.
5) If an industry fails to provide the prescribed information under section 13 within the specified period, the industry registration body may impose the following fine on the industry:
(a) a fine of one thousand rupees, if it is a micro-enterprise,
(b) a fine of five thousand rupees, if it is a cottage and small industry,
(c) a fine of ten thousand rupees, if it is a medium industry,
(d) a fine of twenty-five thousand rupees, if it is a large industry.
6) If an industry does an act contrary to section 36, the Ministry may, on the recommendation of the industry registration body, withhold any time any incentive, exemption, facility or concession provided to the industry, recover the amount equal to such incentive, exemption, facility or concession or impose a fine equal to that amount.
7) If an industry does not perform the corporate social responsibility under section 54, the Ministry may, on the recommendation of the industry registration body, impose a fine to be set by one point five percent of the yearly net profits of the industry. The Ministry shall impose an additional fine at the rate of zero point five percent of the yearly net profits for each year on an industry which does not perform such responsibility for a period exceeding one fiscal year.
8) If an industry fails to comply with any terms to be complied with under this Act or the rules framed hereunder or any direction given by the Ministry upon recommendation of the industry registration body, from time to time, the industry registration body may impose the following fine on the industry:
(a) a fine not exceeding five thousand rupees, if it is a micro-enterprise,
(b) a fine of fifty thousand to one hundred fifty thousand rupees, if it is a cottage and small industry,
(c) a fine of one hundred fifty thousand to three hundred thousand rupees, if it is a medium industry,
(d) a fine of two hundred fifty thousand to three hundred thousand rupees, if it is a large industry.
9) The Ministry may, on the recommendation of the industry registration body, impose the following fine on an industry which does any act contrary to this Act or the rules framed here under, other than that set forth in this section:
(a) a fine not exceeding fifteen thousand rupees, if it is a micro-enterprise,
(b) a fine of fifteen thousand to thirty thousand rupees, if it is a cottage and small industry,
(c) a fine of thirty thousand to fifty thousand rupees, if it is a medium industry,
(d) a fine of fifty thousand to one hundred thousand rupees, if it is a large industry.
10) When imposing a fine under this section, an additional fine of fifty percent of the fine imposable under this section shall be imposed on an industry requiring permission under Section 8.
11) Notwithstanding anything contained in this section, provisions on imposition of fines on and taking action on any of the industries to be registered and regulated by the Province and Local Level shall be as determined by the concerned Provincial or Local law.