If any person, who is registered with the Board as a collective investment scheme, including mutual funds, for sponsoring or carrying on any investment scheme, fails to comply with the terms and conditions of certificate of registration, he shall be liable to a penalty

Section 15D of SEBI Act.  
This section specifically deals with "Penalty for certain defaults in case of mutual funds."   If a person registered with the Board as a collective investment scheme (including mutual funds)  fails to   comply with  the terms and conditions of their certificate of registration:  

• Minimum Penalty: ₹1 Lakh  

• Daily Penalty: Up to ₹1 Lakh for each day the failure continues  

• Maximum Penalty (Cap): ₹1 Crore  

Note: This specific structure was standardized under the Securities Laws (Amendment) Act, 2014, to ensure penalties for administrative and compliance failures (like those in Section 15A, 15B, 15C, and 15D) are capped at ₹1 Crore, distinguishing them from more severe offenses like insider trading or fraud (Sections 15G and 15HA) which carry higher caps (e.g., ₹25 Crore).