If a company has not paid declared dividend within 30 days, the directors knowingly party to default are punishable with:

1. Section 127 — directors knowingly party to the default are liable to imprisonment up to 2 years and fine of Rs 1000/day during default. 2. Company is liable to interest at 18% p.a. on the unpaid amount. 3. Hence (A). _Source: ICAI BoS CA Inter Paper 2 — Declaration and Payment of Dividend_