(3)The offence under this section may be compounded if the person referred to in sub-section (1) or the conductor or the driver referred to in sub-section (2), pays, on the spot on demand by such authority as the State Government may, by notification in the Official Gazette, specify,-(a)ten times the actual fare payable by such person or realisable by such conductor or driver; or (b) rupees five hundred, whichever is less.