Section 34: Crediting sums realised by way of penalties to Consolidated Fund of India

Section 34 of the Act establishes a clear rule for handling the money collected through financial penalties. When the Board, which is the regulatory body responsible for enforcing this law, imposes a penalty under this Act, the collected funds do not stay with the Board. Instead, the law requires that all sums realised by way of these penalties must be credited directly to the Consolidated Fund of India. This provision ensures a strict separation between the authority that issues the fines and the destination of the money. Because the Board cannot keep the penalty money to fund its own operations, this rule dictates exactly where the money must go. Every sum collected as a penalty under the Act is simply transferred to the Consolidated Fund of India as required by the text.

Key points

• All sums realised from penalties imposed by the Board must be credited to the Consolidated Fund of India.
• The Board does not retain the penalty money it collects for its own use.
• This rule applies to all penalties imposed under the Act.

Common misreadings

• Assuming the Board keeps the penalty money to fund its own operations, when the text explicitly directs all sums to the Consolidated Fund of India.