Section 12(7) in Companies (Share Capital and Debentures) Rules, 2014
(7)The amount, if any, payable by the employees, at the time of grant of option-(a)may be forfeited by the company if the option is not exercised by the employees within the exercise period; or(b)the amount may be refunded to the employees if the options are not vested due to non-fulfilment of conditions relating to vesting of option as per the Employees Stock Option Scheme.
