62. Compounding of offences arising arising under the Act.
(1)Any officer empowered by the State Government shall issue a show cause notice before taking any action under Section 75 or 77 of the Act against any persons who has committed, or reasonably suspected to have committed, any offence under the Act, or rules made thereunder asking him to show cause within a period of fifteen days, why action under the said Section 76, or as the case may be, under Section 77 of the Act should not be taken against him.(2)Notwithstanding anything contained in the said provision-(i)any officer empowered by the State Government to compound the offence committed under the Act or reasonably suspected to have committed any offence under the Act and Rules made thereunder, may compound the said offence committed by any person, either before or after the institution of the criminal proceedings under the Act;Provided that the said proposal to compound the offence is accepted by any officer authorised by the State Government.(ii)On an approval of the said proposal by an officer empowered to approve such a proposal referred to above, the officer empowered to compound the offence shall send an intimation in writing in that behalf to that person specifying therein-(a)a sum determined by way of composition;(b)the date on or before which the sum shall be paid.Appendix IForm I[See Section 4(2) and Rule 3]Form of application to be used by a foreman for obtaining prior sanction to commence or conduct a chitPlace:Date:From:..............................To,The Secretary to the Government of........Or(The Authorised Officer by designation)Sir,I................................son/wife/daughter of....................(here state profession or occupation) residing at.................We, the Chairman and Secretary respectively *on behalf of (name of the firm, company, co-operative society etc.) situate at/having its registered office at.......... desire to commence and conduct a chit as foreman at (here specify the place with postal address in detail). Full particulars in this regard are given in the Annexure hereto.
