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Chapter-8 Provisions Relating to Offences and Punishment

  1. Offences deemed to have been committed: If anyone does, or causes to be done, any of the following acts, he or she shall be deemed to have committed the offence:

  (a)        failure to make the labeling pursuant to Section 6 or mentioning false matters in the label,

(b)        failure of the producer, importer, carrier, hoarder, seller or service provider to fulfill his or her liabilities or doing any act to breach such liabilities under Sections 7, 8, 9, 10, 11 and 12 respectively,

    (c)        failure of the seller to withdraw the goods within the deadline prescribed or failure to give the goods equal to such price as replacement pursuant to Section 14,

   (d)       failure to keep the bills, invoices pursuant to Section 15,

    (e)        doing, or causing to be done, the unfair trade activity pursuant to clause (a), (g), (j) or (l) of sub-section (2) of Section 16,

      (f)        doing, or causing to be done, the unfair trade activity pursuant to clauses (b), (c), (d), (e), (f), (h), (i), (k), (m), (o) and (p) of sub-section (2) of Section 16,

      (g)        inflicting, or causing to be inflicted, adverse impact on demand, supplies or price pursuant to clause (a) of sub-section (1) or sub-section (2) of Section 17,

     (h)        doing, or causing to be done, any act referred to in clause (b) or (c) of sub-section (2) of Section 17,

    (i)         doing, or causing to be done, any act contrary to Section 18,

      (j)         selling, or causing to be sold, at the price higher than that fixed by the Government of Nepal, contrary to sub-section (3) of Section 19,

      (k)        failure to do, or causing not to be done, any act referred to in sub-section (1) or (2) of Section 20,

    (l)         to sell or distribute goods or services contrary to the standards determined under sub-section (1) of Section 21,

  (m)       not to render assistance in the course of investigation, inspection or monitoring under this Act pursuant to sub-section (2) of Section 54.

  1. To impose fine instantly: (1) Notwithstanding anything contained in Section 38, if from the instantly received evidence, the producer, carrier, hoarder, importer, seller of goods or service provider is found to have committed any offence, in the course of market monitoring, inspection, inquiry, the Inspection Officer may impose the fine as follows:

    (a)       From five thousand to twenty thousand rupees if the offence referred to in clause (d) of Section 38 is committed, or caused to be committed,

   (b)       From two hundred thousand to three hundred thousand rupees if the offence referred to in clause (e) of Section 38 is committed, or caused to be committed,

    (c)       From fifty thousand rupees to one hundred thousand rupees if the offence referred to in clause (h) of Section 38 is committed or caused to be committed,

 (d)       From fifty thousand to one hundred thousand rupees if the offence referred to in clause (k) of Section 38 is committed, or caused to be committed,

  (e)       Up to twenty thousand rupees if the offence referred to in clause (m) of Section 38 is committed, or caused to be committed.

            (2) If the offence referred to in sub-section (1) is committed frequently, double fine shall be imposed for commission of the offence each time.

            (3) The Inspection Officer shall have to inform the Department within three days by revealing all the details including the cause to impose the fine instantly and the amount charged thereof.

            (4) The Inspection Officer may take the following actions against the producer, carrier, hoarder, importer or seller of such goods who does not pay or submit such fine within seven days from the date of the decision made to fine instantly pursuant to sub-section (1):

                          (a)       keeping such goods sealed until the fine is paid,

 (b)       withholding such other goods as well as to be produced, transported, hoarded, imported or sold by the producer, carrier, hoarder, importer or seller of such goods until the fine is paid.

            (5) If one is not satisfied with any act of the Inspection Officer under this Section, an application may be made to the Director General of the Department within seven days for the review of the matter.

            (6) The Director General of the Department shall have to make a decision in this regard within twenty-one days after examining whatever or whoever is to be examined upon the application made against the decision by the Inspection Officer pursuant to sub-section (5).

            (7) While making an application for the review, fifty percent of the fine imposed by the Inspection Officer shall have to be submitted as a cash deposit.

            (8) The decision made by the Director General upon the application made for the review shall be final.

            (9) Other procedures to be adopted regarding the instant imposition of fine by the Inspection Officer shall be as prescribed.

  1. Punishment: (1) If any one commits, or causes to be committed, any of the following acts which is deemed to be an offence under this Act, the Director General of the Department may, according to the gravity of the offence, punish as follows:

     (a)       with imprisonment from three months to six months or fine up to fifty thousand rupees or both penalties if the offence referred to in clauses (a) and (c) of Section 38 is committed, or caused to be committed,

    (b)       with imprisonment from three months to one year or fine from one hundred thousand rupees to three hundred thousand rupees or both penalties if the offence referred to in clause (i) of Section 38 is committed,

    (c)       with imprisonment from three months to six months or fine from fifty thousand rupees to one hundred thousand rupees or both penalties if the offence referred to in clauses (j) and (l) of Section 38 is committed.

                (2) A party who is not satisfied with the decision made by the Director General of the Department under sub-section (1) may appeal to the concerned District Court within thirty-five days.

            (3) For the following offences, punishment shall be as follows:

  (a)       with imprisonment from two years to three years or fine from three hundred thousand to five hundred thousand rupees or both penalties for one who commits, or causes to be committed, the offence referred to in clause (b) of Section 38,

   (b)       with imprisonment from two years to five years or fine from four hundred thousand to six hundred thousand rupees or both penalties for one who commits, or causes to be committed, the offence referred to in clause (f) of Section 38,

  (c)       with imprisonment from two years to three years or fine from three hundred thousand to five hundred thousand rupees or both penalties for one who commits, or causes to be committed, the offence referred to in clause (g) of Section 38.

            (4) A person who commits, or causes to be committed, any other act contrary to this Act or the rules framed under this Act, Except for the acts under sub-section (1), shall be punished with imprisonment for a term not exceeding two years or fine up to three hundred thousand rupees or both.