107. Penalties for establishing or maintaining mental health establishment in contravention of
provisions of this Act.—(1) Whoever carries on a mental health establishment without registration shall
be liable to a penalty which shall not be less than five thousand rupees but which may extend to fifty
thousand rupees for first contravention or a penalty which shall not be less than fifty thousand rupees
but which may extend to two lakh rupees for a second contravention or a penalty which shall not be less
than two lakh rupees but which may extend to five lakh rupees for every subsequent contravention.
(2) Whoever knowingly serves in the capacity as a mental health professional in a mental health
establishment which is not registered under this Act, shall be liable to a penalty which may extend to
twenty-five thousand rupees.
(3) Save as otherwise provided in this Act, the penalty under this section shall be adjudicated by the
State Authority.
(4) Whoever fails to pay the amount of penalty, the State Authority may forward the order to the
Collector of the district in which such person owns any property or resides or carries on his business or
profession or where the mental health establishment is situated, and the Collector shall recover from
such persons or mental health establishment the amount specified thereunder, as if it were an arrear of
land revenue.
(5) All sums realised by way of penalties under this Chapter shall be credited to the Consolidated
Fund of India.
108. Punishment for contravention of provisions of the Act or rules or regulations made
thereunder.—Any person who contravenes any of the provisions of this Act, or of any rule or
regulation made thereunder shall for first contravention be punishable with imprisonment for a term
which may extend to six months, or with a fine which may extend to ten thousand rupees or with both,
and for any subsequent contravention with imprisonment for a term which may extend to two years or
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with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees or
with both.
109. Offences by companies.—(1) Where an offence under this Act has been committed by a
company, every person who at the time the offence was committed was in-charge of, and was
responsible to, the company for the conduct of the business of the company, as well as the company,
shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished
accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any
punishment provided in this Act, if he proves that the offence was committed without his knowledge or
that he has exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been
committed by a company and it is proved that the offence has been committed with the consent or
connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other
officer of the company, such director, manager, secretary or other officer shall also be deemed to be
guilty of the offence and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section,—
(a) “company” means any body corporate and includes a firm or other association of individuals;
and
(b) “director”, in relation to a firm, means a partner in the firm.