58G. Power of Bank
to impose fine.- (1) Notwithstanding anything contained
in section 58B, if the contravention or default of the nature
referred to in section 58B is committed by a nonbanking financial
company, the Bank may impose on such non-banking financial
company -
(a) a penalty not exceeding five thousand rupees; or
(b) where the contravention or default is under sub-section
(4A) or clause (a) or clause (aa) of sub-section (5) of section
58B, a penalty not exceeding five lakh rupees or twice the
amount involved in such contravention or default, where the
amount is quantifiable, whichever is more; and where such
contravention or default is a continuing one, further penalty
which may extend to twenty-five thousand rupees for every
day, after the first, during which the contravention or default
continues.
(2) For the purpose of imposing penalty under sub-section
(1), the Bank shall serve a notice on the non-banking financial
company requiring it to show cause why the amount specified
in the notice should not be imposed as a penalty and a reasonable
opportunity of being heard shall also be given to such non-banking
financial company.
(3) Any penalty imposed by the Bank under this section shall
be payable within a period of thirty days from the date on
which notice issued by the Bank demanding payment of the sum
is served on the non-banking financial company and, in the
event of failure of the non-banking financial company to pay
the sum within such period, may be levied on a direction made
by the principal civil court having jurisdiction in the area
where the registered office or the head office of the non-banking
financial company is situated;
Provided that no such direction shall be made, except on
an application made by an officer of the Bank authorised in
this behalf, to by the principal civil court.
(4) The court, which makes a direction under sub-section
(3), shall issue a certificate specifying the sum payable
by the non-banking financial company and every such certificate
shall be enforceable in the same manner as if it were a decree
made by the court in a civil suit.
(5) No complaint shall be filed against any non-banking financial
company in any court of law pertaining to any contravention
or default in respect of which any penalty has been imposed
by the Bank under this section.
(6) Where any complaint has been filed against a non-banking
financial company in a court in respect of contravention or
default of the nature referred to in section 58B, no proceedings
for imposition of penalty against that non-banking financial
company shall be taken under this section.
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