Section 20 in The M.P. Vinirdishta Bhrashta Acharan Nivaran Adhiniyam, 1982
20. Punishment fur applying for registration of or use of bogus firm-name.
- Whoever, applies for the registration of a bogus or non-existent firm, or uses a bogus or non-existent firm name, for the purpose of manipulating, sales-tax evasion for collusive bidding or for submitting collusive tender, shall be punished with imprisonment of either description which may extend to three years or with fine or both.Explanation. - Bogus firm includes a fictitious firm nominally registered in the name of a relation, friend or servant of a businessman only for showing a separate entity and having some nominal transaction recorded in that name, and having for its objective procurement of business to the real firm of the businessman by submitting tenders at the rates higher or bidding at the rates lower than the rates given or bids made by the real firm so as to make it sure that the real firm of the businessman gets the contract or licence, as the case may be.
