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Section 44: Penalty for failure to furnish information, return, etc.

Information Technology Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Act 2000
Section 43 All 90 Sections of Information Technology Act Section 45

Legal Commentary & Landmark Judgments: Section 44

Section 44 imposes substantial administrative monetary penalties for failure to furnish statutory information, file regulatory returns, or maintain prescribed books of accounts under the Information Technology Act, 2000.

  • Failure to Furnish Documents or Returns: Attracts an administrative penalty up to one lakh and fifty thousand rupees for each failure to deliver mandated information to the Controller.
  • Continuing Default Penalties: Imposes an additional penalty up to five thousand rupees for every day during which the failure to file returns or statutory information continues.
  • Failure to Maintain Books of Accounts: Imposes a penalty up to ten thousand rupees for every day during which an entity fails to maintain prescribed books of accounts or electronic records.
Key Landmark Precedents:
  • SEBI v. Shri Ram Mutual Fund (2006) 5 SCC 361: Supreme Court held that administrative monetary penalties for regulatory non-compliance are strict liabilities where mens rea is not an essential prerequisite.
  • Chairman, SEBI v. Cabot International Capital Corp. (2005) 123 Comp Cas 841 (Bom): Bombay High Court established that failure to furnish statutory returns within prescribed timelines justifies regulatory penalties irrespective of mala fide intent.
  • Director of Enforcement v. MCTM Corpn. (P) Ltd. (1996) 2 SCC 471: Supreme Court affirmed that civil statutory penalties for administrative defaults are designed to ensure deterrence and enforce regulatory compliance.
Courtroom Practice & Strategic Litigation Guidance:

When representing entities facing Section 44 proceedings before the Adjudicating Officer, argue procedural compliance or force majeure under Section 47 to mitigate the daily penalty, as technical failure to file returns creates prima facie strict civil liability.

Section 43 All 90 Sections of Information Technology Act Section 45