Section 448 of the Companies Act, 2013
Section 448 of the Companies Act, 2013
– Punishment for False Statement
⚖️ Bare Act Provision:
Section 448:
If any person makes a false statement in any return, report, certificate, financial statement, prospectus, statement or other document, required by or for the purposes of this Act to be submitted by a company or any other person, knowing it to be false, or does not believe it to be true, he shall be liable to:
Imprisonment for a term which may extend to 6 months, or
Fine which may extend to ₹5 lakh, or
Both imprisonment and fine.
✅ Explanation:
This section penalizes any person who intentionally submits false or misleading information in official company documents.
It aims to maintain transparency and truthfulness in documents submitted to regulators, shareholders, or the public.
Applies to documents such as financial statements, reports, certificates, prospectuses, returns, etc.
⚠️ Important:
The person must know the statement is false or not believe it to be true (mens rea is required).
The punishment can be both imprisonment and fine based on the gravity of the offense.
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