If any person or persons trade or carry on business under any name or title, of which the word “Limited” or the words “Private Limited” or any contraction or imitation thereof is or are the last word or words, that person or each of those persons shall, unless duly incorporated with limited liability, or unless duly incorporated as a private company with limited liability, as the case may be, punishable with fine which shall not be less than five hundred rupees but may extend to two thousand rupees for every day for which that name or title has been used.
Legal Commentary & Landmark Judgments: Section 453
Section 453 penalizes the unauthorized commercial use of the words 'Limited' or 'Private Limited' by unincorporated associations, sole proprietorships, or partnerships to prevent fraudulent misrepresentation of corporate limited liability.
When investigating fraudulent unincorporated schemes or Ponzi networks operating under the guise of an unregistered private limited entity, lodge an immediate complaint under Section 453 with the RoC and police, seeking daily per diem fines and injunctive cessation of trading.