- Whoever makes default in deposit of any contributions or transfer the Fund created or fails to assign policy obtained from the Life Insurance Corporation of India or fails to deposit the instalment allowed under this Act and the scheme or contravenes any of the provisions of the Act and the scheme or fails to comply with the direction of Controlling Authority, he shall be punishable with imprisonment for a term which shall not be less than six months but which may be extended to two years or with fine which shall not be less than ten thousand rupees but which may be extended to twenty thousand rupees or with both and in case of a continuing offence with a further fine which may extend upto one thousand rupees for each day during which the offence continues.
