1
[20. Penalties.—Any person who—
(a) (i) in any return, statement or other document required by or under this Act, makes a
statement which is false in any material particular, knowing it to be false, or willfully omits to make a
material statement; or
(ii) without reasonable excuse (the burden of proving which shall be on him) fails to furnish any
return, statement or other document or any information or to answer any question or to comply with
any requisition made under this Act or any rules made thereunder; or
(iii) enters into any forward contract during the period of suspension of business of a recognised
association in pursuance of a notification under section 14; or
(b) is a member of any association, other than a recognised association, to which a certificate of
registration has not been granted under this Act; or
(c) publishes or circulates information relating to the rate at which any forward contract has been
entered into in contravention of any of the bye-laws of a recognised association; or
(d) organises, or assists in organising, or is a member of, any association in contravention of the
provisions contained in the proviso to sub-section (1) of section 18; or
(e) enters into any forward contract or any option in goods in contravention of any of the
provisions contained in sub-section (1) or sub-section (3A) or sub-section (4) of section 15, section 17
or section 19,
shall, on conviction, be punishable—
(i) for a first offence, with imprisonment which may extend to one year, or with a fine of not less
than one thousand rupees, or with both;
(ii) for a second or subsequent offence under clause (d), or under clause (e) [other than an offence
in respect of a contravention of the provisions of sub-section (4) of section 15], with imprisonment
which may extend to one year and also with fine: Provided that in the absence of special and adequate
reasons to the contrary to be mentioned in the judgment of the court, the imprisonment shall not be
less than one month and the fine shall not be less than one thousand rupees.]
21. Penalty for owning or keeping place used for entering into forward contracts in
goods.—Any person who—
(a) owns or keeps a place other man that of a recognised association, which is used for the
purpose of entering into or making or performing, whether wholly or in part, any forward contracts in
contravention of any of the provisions of this Act and knowingly permits such place to be used for
such purposes, or
(b) without the permission of Central Government, organises, or assists in organising, or becomes
a member of, any association, other than a recognised association, for the purpose of assisting in
entering into or making or performing, whether wholly or in part, any forward contracts in
contravention of any of the provisions of this Act, or
(c) manages, controls or assists in keeping any place other man that of a recognised association,
which is used for the purpose of entering into or making or performing, whether wholly or in part,
any forward contracts in contravention of any of the provisions of this Act or at which such forward
1. Subs. by Act 62 of 1960, s. 17, for section 20 (w.e.f. 28-12-1960).
16
contracts are recorded or adjusted, or rights or liabilities arising out of such forward contracts are
adjusted, regulated or enforced in any manner whatsoever, or
(d) not being a member of a recognised association, willfully represents to, or induces, any person
to believe that he is a member of a recognised association or that forward contracts can be entered
into or made or performed, whether wholly or in part, under this Act through him, or
(e) not being a member of a recognised association or his agent authorised as such under the rules
or by-laws of such association, canvasses, advertises or touts in any manner, either for himself or on
behalf of any other person, for any business connected with forward contracts in contravention of any
of the provisions of this Act, or
(f) joins, gathers, or assists in gathering at any place, other than the place of business specified in
the bye-laws of a recognised association, any person or persons for making bids or offers or for
entering into or making or performing, whether wholly or in part, any forward contracts in
contravention of any of the provisions of this Act, or
(g) makes, publishes or circulates any statement or information which is false and which he either
knows or believes to be false, affecting or tending to affect the course of business in forward contracts
in respect of goods to which the provisions of section 15 have been made applicable,
1
[or]
1
[(h) manipulates or attempts to manipulate prices in respect of forward contracts for the sale or
purchase of any goods specified in any notification under section 15, in any area specified in that
notification,]
2
[shall, on conviction, be punishable—
(i) for a first offence, with imprisonment which may extend to two years, or with fine of not less
than one thousand rupees, or with both;
(ii) for a second or subsequent offence, with imprisonment which may extend to two years and
also with fine: provided that in the absence of special and adequate reasons to the contrary to be
entioned in the judgment of the court, the imprisonment shall not be less than one month and the fine
shall not be less than one thousand rupees.]
3
[21A. Power of court to order forfeiture of property.—Any court trying an offence punishable
under section 20 or section 21 may, if it thinks fit and in addition to any sentence which it may impose for
such offence, direct that any money, goods or other property in respect of which the offence has been
committed, shall be forfeited to the Central Government.
Explanation.—For the purposes of this section, property in respect of which an offence has been
committed, shall include deposits in a bank where the said property is converted into such deposits.]
22. Offences by companies.—(1) Where an offence has been committed by a company, every person
who, at the time the offence was committed, was in charge of, and was responsible to the company for the
conduct of the business of the company, as well as the company, shall be deemed to be guilty of the
offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any
punishment provided in this Act, if he proves that the offence was committed without his knowledge or
that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been
committed by a company and it is proved that the offence has been committed with the consent or
connivance of, or is attributable to any gross negligence on the part of, any director, manager, secretary or
other officer of the company, such director, manager, secretary or other officer shall also be deemed to be
guilty of that offence and shall be liable to be proceeded against and punished accordingly.
1. Ins. by Act 62 of 1960, s. 18 (w.e.f. 28-12-1960).
2. Subs. by s. 18, ibid., for certain words (w.e.f. 28-12-1960).
3. Ins. by s. 19, ibid. (w.e.f. 28-12-1960).
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Explanation.—For the purposes of this section—
(a) “company” means any body corporate and includes a firm or other association of individuals;
and
(b) “director”, in relation to a firm, means a partner in the firm.
1
[22A. Power to search and seize books of account or other documents.—(1) Any presidency
magistrate or a magistrate of the first class may, by warrant, authorise any police officer not below the
rank of sub-inspector to enter upon and search any place where books of account or other documents
relating to forward contracts or options in goods entered into contravention of the provisions of this Act,
may be or may be reasonably suspected to be, and such police officer may seize any such book or
document, if in his opinion, it relates to any such forward contract or option in goods.
(2) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), shall, so far as may be, apply
to any search or seizure made under sub-section (1) as they apply to any search or seizure made under the
authority of a warrant issued under section 98 of the said Code.
22B. Presumptions to be drawn in certain cases.—(1) Where any books of account or other
documents are seized from any place and there are entries therein making reference to quantity,
quotations, rates, months of delivery, receipt or payment of differences or sale or purchase of goods or
option in goods, such books of account or other documents shall be admitted in evidence without
witnesses having to appear to prove the same; and such entries shall be prima facie evidence of the
matters, transactions and accounts purported to be therein recorded.
(2) In any trial for an offence punishable under section 21, it shall be presumed, until the contrary is
proved, that the place in which the books of account or other documents referred to in sub-section (1)
were seized, was used, and that the persons found therein were present, for the purpose of committing the
said offence.]
23. Certain offences to be cognizable.—Notwithstanding anything contained in the Code of
Criminal Procedure, 1898 (5 of 1898),
2
[the following offences shall be deemed to be cognizable within
the meaning of that Code, namely:—
(a) an offence falling under sub-clause (ii) of clause (a) of section 20 in so far as it relates to the
failure to comply with any requisition made under sub-section (3) of section 8;
(b) an offence falling under clause (d) of section 20;
(c) an offence falling under clause (e) of section 20 other than a contravention of the provisions of
sub-section (3A) or sub-section (4) of section 15;
(d) an offence falling under section 21.]
24. Jurisdiction to try offences under this Act.—No court inferior to that of a presidency magistrate
or a magistrate of the first class shall take cognizance of or try any offence punishable under this Act.