# Section 76A — Punishment for Contravention of Section 73 or Section 76
## When Section 76A is Triggered
Applies where a company:
1. Accepts/invites/allows/causes another to accept or invite any deposit in contravention of the manner or conditions under Section 73 or 76 or rules, OR
2. Fails to repay the deposit or interest within the time specified under Section 73 or 76 or the extended time allowed by the Tribunal.
## Penalty on the Company
| Type | Amount |
|---|---|
| Minimum Fine | Rs. 1 crore OR twice the amount of deposit accepted, whichever is LESS |
| Maximum Fine | Rs. 10 crore |
> ⚠ Note the unusual 'whichever is LESS' for the minimum — drafting choice that softens the floor for small companies whose deposit base is below Rs. 50 lakh.
## Penalty on Every Officer in Default
- Imprisonment: Up to 7 years, AND
- Fine: Minimum Rs. 25 lakh, Maximum Rs. 2 crore
## Aggravated Officer Liability — Fraud Element
If it is established that the officer contravened the provisions:
- Knowingly, OR
- Wilfully with intent to deceive the company, its shareholders, depositors, creditors, or taxation authorities,
— Then the penalty shall be under Section 447 (Fraud — much more severe punishment).
## Comparison: Section 74(3) vs Section 76A
| Element | Section 74(3) — Pre-Act deposits | Section 76A — Post-Act deposits (s.73/76) |
|---|---|---|
| Company Fine | Min 1 cr – Max 10 cr | Min: lower of 1 cr OR 2× deposit; Max 10 cr |
| Officer | 7 yrs OR 25L–2cr OR both | 7 yrs AND 25L–2cr (cumulative) |
| Fraud trigger | Not specifically | Section 447 applies |
## Key Distinction
Section 74 punishment uses 'OR' (alternative) for officers. Section 76A uses 'AND' (both imprisonment AND fine) for officers — making it harsher.