Section 27 of the SARFAESI Act provides for penalties for ARCs that violate provisions of Chapter II of the Act. What is the penalty for contravention of any provision of Chapter II or any direction of the RBI thereunder?

Section 27 provides that if an ARC contravenes any provision of Chapter II of the SARFAESI Act or any direction issued by the RBI under Chapter II, such ARC shall be liable to pay, by way of penalty, a sum not exceeding Rs. 5 lakh for each such contravention. Where the contravention is a continuing one, a further penalty not exceeding Rs. 10,000 for every day during which such contravention continues after the first day may be imposed. This is distinct from the higher penalties under Section 30A (up to Rs. 1 crore) for failure to comply with RBI directions, and from the criminal penalties under Section 29. Section 27 penalties are civil in nature and are in addition to (not in lieu of) other consequences such as cancellation under Section 4.