374 Penalty for contravention of section 372 or 373

If default is made in complying with the provisions of section 372 [excluding sub-sections (6) and (7)] or section 373 every officer of the company who is in default shall be punishable with fine which may extend to fifty thousand rupees.

section has become inoperative so far as inter-corporate investments made after 30th October, 1998 are concerned. This section which specified the penalty for contraventions of section 372 or 373, has now been incorporated in newly inserted section 372A.