(1) In accordance with the provisions of this Code, the statutory rules and compliance mandates governing Compounding of offences shall be enforced across all covered establishments throughout India.
(2) Every employer, establishment, or covered entity shall strictly adhere to the operational guidelines, contribution ceilings, registration schedules, and benefit disbursement standards specified under this section.
(3) Any default, failure to deposit contributions, or contravention of statutory mandates under this section shall be subject to recovery proceedings under Chapter XI and penalties under Chapter XII.
Legal Commentary & Landmark Judgments: Section 139
Section 139 of the Code provides for the compounding of offenses, authorizing designated compounding officers to compound non-serious offenses before or after the institution of prosecution upon payment of prescribed compounding sums.
Upon receiving an inspection notice for late return filings or delayed administrative remittances, immediately submit a compounding application under Section 139, remitting the prescribed percentage (50% or 75%) to secure a complete release from prosecution.