Section 62 in Andhra Pradesh Chit Funds Rules, 2008
62. Compounding of offences arising under the Act:
(1)Any officer empowered by the State Government shall issue a show cause notice before taking any action under section 76 or section 77 of the said Act against any person who has committed or is 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 under section 77 of the said Act, as the case may be, should not be taken against him.(2)Notwithstanding anything contained in the said provisions,(i)any officer empowered by the State Government to compound any offence committed or reasonably suspected to have committed any offence under the said Act and rules made thereunder compound the said offence committed by any person, either before or after the institution of the criminal proceedings under the said Act.Provided that a proposal by such officer to compound the offence is approved by an officer authorized by the State Government in this behalf.(ii)On approval of the said proposal by the authorized officer 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 not exceeding the amount of fine prescribed for the relative offence;(b)the date on or before which the sum shall be paid.
