Question

Section 33 of the SARFAESI Act deals with offences by companies. If an offence under the Act is committed by a company, who shall be deemed guilty and shall be liable to be proceeded against?

Q: Answer-Section 33 of the SARFAESI Act deals with offences by companies. If an offence under the Act is comm...

Section 331 provides that where an offence under the SARFAESI Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. However, such a person is not liable if they prove that the offence was committed without their knowledge, or that they exercised all due diligence to prevent commission of the offence. Section 332 further provides that where the offence is attributed to neglect or consent of a director, manager, secretary or officer, that person shall also be deemed guilty.

A Only the company as a legal entity; no individual officer can be prosecuted

B Only the managing director, regardless of knowledge or involvement

C Any employee at any level who was directly involved in the offence

D The company and every person who at the time of the offence was in charge of and responsible for the conduct of the company's business, unless they prove they had no knowledge or exercised all due diligence

E The statutory auditor of the company who failed to report the offence

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