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Penalty under Section 392 for contravention of Chapter XXII (foreign companies) is:
AUp to Rs 1 lakh on the company alone
BNo penalty
CImprisonment of 7 years for directors
DFine of Rs 1 lakh to Rs 3 lakh and continuing penalty of Rs 50,000 per day for officers in default
Answer & Solution
Correct answer: D. Fine of Rs 1 lakh to Rs 3 lakh and continuing penalty of Rs 50,000 per day for officers in default
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_