The maximum fine under Section 21(3) of the Banning of Unregulated Deposit Schemes Act, 2019 may extend…
Section 21(3) punishes a deposit taker who accepts deposits in breach of section 3 and fraudulently defaults, with a fine of at least five lakh rupees that may extend to…
Choose your answer
The maximum fine under Section 21(3) of the Banning of Unregulated Deposit Schemes Act, 2019 may extend to:
Answer and explanation
Correct answer C
Section 21(3) punishes a deposit taker who accepts deposits in breach of section 3 and fraudulently defaults, with a fine of at least five lakh rupees that may extend to "twice the amount of aggregate funds collected" from the subscribers, members or participants. The ten-lakh cap belongs to the lesser offences in sub-sections (1) and (2), and three times the profits is the measure in section 22.