68. Punishment for concealment of property.—Where any officer of the corporate debtor has,—
(i) within the twelve months immediately preceding the insolvency commencement date,—
(a) wilfully concealed any property or part of such property of the corporate debtor or
concealed any debt due to, or from, the corporate debtor, of the value of ten thousand rupees or
more; or
(b) fraudulently removed any part of the property of the corporate debtor of the value of ten
thousand rupees or more; or
(c) wilfully concealed, destroyed, mutilated or falsified any book or paper affecting or
relating to the property of the corporate debtor or its affairs, or
(d) wilfully made any false entry in any book or paper affecting or relating to the property of
the corporate debtor or its affairs; or
(e) fraudulently parted with, altered or made any omission in any document affecting or
relating to the property of the corporate debtor or its affairs; or
(f) wilfully created any security interest over, transferred or disposed of any property of the
corporate debtor which has been obtained on credit and has not been paid for unless such
creation, transfer or disposal was in the ordinary course of the business of the corporate debtor; or
(g) wilfully concealed the knowledge of the doing by others of any of the acts mentioned in
clauses (c), (d) or clause (e); or
(ii) at any time after the insolvency commencement date, committed any of the acts mentioned in
sub-clause (a) to (f) of clause (i) or has the knowledge of the doing by others of any of the things
mentioned in sub-clauses (c) to (e) of clause (i); or
(iii) at any time after the insolvency commencement date, taken in pawn or pledge, or otherwise
received the property knowing it to be so secured, transferred or disposed,
such officer shall be punishable with imprisonment for a term which shall not be less than three years but
which may extend to five years, or with fine, which shall not be less than one lakh rupees, but may extend
to one crore rupees, or with both:
Provided that nothing in this section shall render a person liable to any punishment under this section
if he proves that he had no intent to defraud or to conceal the state of affairs of the corporate debtor.
69. Punishment for transactions defrauding creditors.—1
[If] an officer of the corporate debtor or
the corporate debtor—
(a) has made or caused to be made any gift or transfer of, or charge on, or has caused or connived
in the execution of a decree or order against, the property of the corporate debtor;
(b) has concealed or removed any part of the property of the corporate debtor within two months
before the date of any unsatisfied judgment, decree or order for payment of money obtained against
the corporate debtor,
such officer of the corporate debtor or the corporate debtor, as the case may be, shall be punishable with
imprisonment for a term which shall not be less than one year, but which may extend to five years, or
with fine, which shall not be less than one lakh rupees, but may extend to one crore rupees, or with both:
1. Subs. by Act 26 of 2018, s. 30, for “On or after the insolvency commencement date, if” (w.e.f. 6-6-2018).
74
Provided that a person shall not be punishable under this section if the acts mentioned in clause (a)
were committed more than five years before the insolvency commencement date; or if he proves that, at
the time of commission of those acts, he had no intent to defraud the creditors of the corporate debtor.
70. Punishment for misconduct in course of corporate insolvency resolution process.—(1) On or
after the insolvency commencement date, where an officer of the corporate debtor—
(a) does not disclose to the resolution professional all the details of property of the corporate
debtor, and details of transactions thereof, or any such other information as the resolution professional
may require; or
(b) does not deliver to the resolution professional all or part of the property of the corporate
debtor in his control or custody and which he is required to deliver; or
(c) does not deliver to the resolution professional all books and papers in his control or custody
belonging to the corporate debtor and which he is required to deliver; or
(d) fails to inform there solution professional the information in his knowledge that a debt has
been falsely proved by any person during the corporate insolvency resolution process; or
(e) prevents the production of any book or paper affecting or relating to the property or affairs of
the corporate debtor; or
(f) accounts for any part of the property of the corporate debtor by fictitious losses or expenses, or
if he has so attempted at any meeting of the creditors of the corporate debtor within the twelve
months immediately preceding the insolvency commencement date,
he shall be punishable with imprisonment for a term which shall not be less than three years, but which
may extend to five years, or with fine, which shall not be less than one lakh rupees, but may extend to one
crore rupees, or with both:
Provided that nothing in this section shall render a person liable to any punishment under this section
if he proves that he had no intent to do so in relation to the state of affairs of the corporate debtor.
(2) If an insolvency professional deliberately contravenes the provisions of this Part he shall be
punishable with imprisonment for a term which may extend to six months, or with fine which shall not be
less than one lakh rupees, but may extend to five lakhs rupees, or with both.
71. Punishment for falsification of books of corporate debtor.—On and after the insolvency
commencement date, where any person destroys, mutilates, alters or falsifies any books, papers or
securities, or makes or is in the knowledge of making of any false or fraudulent entry in any register,
books of account or document belonging to the corporate debtor with intent to defraud or deceive any
person, he shall be punishable with imprisonment for a term which shall not be less than three years, but
which may extend to five years, or with fine which shall not be less than one lakh rupees, but may extend
to one crore rupees, or with both.
72. Punishment for wilful and material omissions from statements relating to affairs of
corporate debtor.—Where an officer of the corporate debtor makes any material and wilful omission in
any statement relating to the affairs of the corporate debtor, he shall be punishable with imprisonment for
a term which shall not be less than three years but which may extend to five years, or with fine which
shall not be less than one lakh rupees, but may extend to one crore rupees, or with both.
73. Punishment for false representations to creditors.—Where any officer of the corporate
debtor—
(a) on or after the insolvency commencement date, makes a false representation or commits any
fraud for the purpose of obtaining the consent of the creditors of the corporate debtor or any of them
75
to an agreement with reference to the affairs of the corporate debtor, during the corporate insolvency
resolution process, or the liquidation process;
(b) prior to the insolvency commencement date, has made any false representation, or committed
any fraud, for that purpose,
he shall be punishable with imprisonment for a term which shall not be less than three years, but may
extend to five years or with fine which shall not be less than one lakh rupees, but may extend to one crore
rupees, or with both.
74. Punishment for contravention of moratorium or the resolution plan.—(1) Where the
corporate debtor or any of its officer violates the provisions of section 14, any such officer who
knowingly or wilfully committed or authorised or permitted such contravention shall be punishable with
imprisonment for a term which shall not be less than three years, but may extend to five years or with fine
which shall not be less than one lakh rupees, but may extend to three lakh rupees, or with both.
(2) Where any creditor violates the provisions of section 14, any person who knowingly and wilfully
authorised or permitted such contravention by a creditor shall be punishable with imprisonment for a term
which shall not be less than one year, but may extend to five years, or with fine which shall not be less
than one lakh rupees, but may extend to one crore rupees, or with both.
(3) Where the corporate debtor, any of its officers or creditors or any person on whom the approved
resolution plan is binding under section 31, knowingly and wilfully contravenes any of the terms of such
resolution plan or abets such contravention, such corporate debtor, officer, creditor or person shall be
punishable with imprisonment of not less than one year, but may extend to five years, or with fine which
shall not be less than one lakh rupees, but may extend to one crore rupees, or with both.
75. Punishment for false information furnished in application.—Where any person furnishes
information in the application made under section 7, which is false in material particulars, knowing it to
be false or omits any material fact, knowing it to be material, such person shall be punishable with fine
which shall not be less than one lakh rupees, but may extend to one crore rupees.
76. Punishment for non-disclosure of dispute or 1
[payment] of debt by operational creditor.—
Where—
(a) an operational creditor has wilfully or knowingly concealed in an application under section 9
the fact that the corporate debtor had notified him of a dispute in respect of the unpaid operational
debt or the full and final 1
[payment] of the unpaid operational debt; or
(b) any person who knowingly and wilfully authorised or permitted such concealment under
clause (a),
such operational creditor or person, as the case may be, shall be punishable with imprisonment for a term
which shall not be less than one year but may extend to five years or with fine which shall not be less than
one lakh rupees but may extend to one crore rupees, or with both.
77. Punishment for providing false information in application made by corporate debtor.—
Where—
(a) a corporate debtor provides information in the application under section 10 which is false in
material particulars, knowing it to be false and omits any material fact, knowing it to be material; or
(b) any person who knowingly and wilfully authorised or permitted the furnishing of such
information under sub-clause (a),
1. Subs. by Act 26 of 2018, s. 31, for “repayment” (w.e.f. 6-6-2018).
76
such corporate debtor or person, as the case may be, shall be punishable with imprisonment for a term
which shall not be less than three years, but which may extend to five years or with fine which shall not
be less than one lakh rupees, but which may extend to one crore rupees, or with both.
1* * * * *
2
[77A. Punishment for offences related to prepackaged insolvency resolution process.—(1)
Where—
(a) a corporate debtor provides any information in the application under section 54C which is
false in material particulars, knowing it to be false or omits any material fact, knowing it to be
material; or
(b) a corporate debtor provides any information in the list of claims or the preliminary
information memorandum submitted under sub-section (1) of section 54G which is false in material
particulars, knowing it to be false or omits any material fact, knowing it to be material; or
(c) any person who knowingly and wilfully authorised or permitted the furnishing of such
information under sub-clauses (a) and (b),
such corporate debtor or person, as the case may be, shall be punishable with imprisonment for a term
which shall not be less than three years, but which may extend to five years or with fine which shall not
be less than one lakh rupees, but which may extend to one crore rupees, or with both.
(2) If a director or partner of the corporate debtor, as the case may be, deliberately contravenes the
provisions of Chapter III-A, such person shall be punishable with imprisonment for not less than three
years, but which may extend to five years, or with fine which shall not be less than one lakh rupees, but
which may extend to one crore rupees, or with both.
Explanation.—For the purposes of this section and sections 75, 76 and 77, an application shall be
deemed to be false in material particulars in case the facts mentioned or omitted in the application, if true,
or not omitted from the application, as the case may be, would have been sufficient to determine the
existence of a default under this Code.]