Punishment for Contravention
If the government finds that the company is doing any fraudulent activity and not following the articles of the company, then the government has the power to revoke its license. Also, according to Section 8 (11) of the Companies Act 2013 if the company is not following the requirements given in Section 8, then the government can impose a fine of a minimum of ₹10 Lakhs that can be extended to ₹1 Crore. Also, the directors and the members of the company will be liable if they are part of such activity, the punishment for these members is imprisonment for up to 3 years and a fine between 25 thousand to 25 lakhs.