Penalty under Section 392 for contravention of Chapter XXII (foreign companies) is:

1. Section 392 — penalty starts at Rs 1 lakh and may extend to Rs 3 lakh, with continuing daily fines. 2. Every officer of the foreign company in default is liable. 3. Hence (B). _Source: ICAI BoS CA Inter Paper 2 — Companies Incorporated Outside India_