Punishment for contravention (Section 392 of the Companies Act, 2013) :
(i) Without prejudice to the provisions of section 391, if a foreign company contravenes the provisions of Chapter XXII of the Companies Act, 2013 (i.e. Chapter on Companies incorporated outside India), the foreign company shall be punishable with fine which shall not be less than ` 1,00,000 but which may extend to ` 3,00,000 and in the case of a continuing offence, with an additional fine which may extend to ` 50,000 for every day after the first during which the contravention continues and every officer of the foreign company who is in default shall be punishable with imprisonment for a term which may extend to 6 months or with fine which shall not be less than ` 25,000 but which may extend to ` 5,00,000, or with both.
Thus, the punishment for contravention may be summed up as under:
1. Fine on defaulting foreign company in the range of 1 lac to 3 lac rupees.
2. In case of continuing default an additional fine on the foreign company to the tune of ` 50,000 per day after the first during which the contravention continues.
3. Punishment for every officer of the foreign company who is default shall be:
(a) Imprisonment for a maximum term of 6 months, or
(b) Imposition of a fine of a minimum amount of ` 25,000, or
(c) Both – imprisonment and fine.