Chapter XXIX - Miscellaneous
Section 448
Section 448: punishment for false statement
Section 448 deals with false statements in documents required by or for the purposes of the Companies Act, 2013 or its rules: returns, reports, certificates, financial statements, prospectuses and other statements. A person who knowingly makes a materially false statement, or knowingly omits a material fact, is liable under section 447 (punishment for fraud).
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Need advice on Section 448?
This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Save as otherwise provided in this Act, if in any return, report, certificate, financial statement, prospectus, statement or other document required by, or for, the purposes of any of the provisions of this Act or the rules made thereunder, any person makes a statement,—(a) which is false in any material particulars, knowing it to be false; or (b) which omits any material fact, knowing it to be material, he shall be liable under section 447.
Introduction
The section applies "save as otherwise provided in this Act", so a more specific provision displaces it. Knowledge is essential: the person must know the statement is false, or know that the omitted fact is material.
Section 448 commenced on 12 September 2013 under S.O. 2754(E). The India Code consolidated text shows no amendment, and the text matches the 2013 Gazette.
Key takeaways
Any required document
Covers any return, report, certificate, financial statement, prospectus, statement or other document required by or for the purposes of the Act or rules.
Knowledge is essential
The statement must be false in a material particular, known to be false, or must omit a fact known to be material.
Section 447 consequences
The person is liable under section 447, the fraud provision.
What is covered
The section applies to a statement in any return, report, certificate, financial statement, prospectus, statement or other document required by, or for, the purposes of any provision of the Act or the rules. It covers a statement that is false in any material particular, made knowing it to be false, and a statement that omits a material fact, made knowing the fact to be material.
Consequence
A person who makes such a statement is liable under section 447. The punishment, including the thresholds and the proviso for smaller amounts, is set out in that section; see the section 447 guide.
Signing and certifying
Directors, key managerial personnel and professionals who sign or certify filings make statements in them. Because the section turns on knowledge, the checks behind each signature matter: board papers, reconciliations and supporting documents.
Practical preparation
Tie every figure in a filing to source records; review omissions as carefully as statements; keep working papers and board approvals; correct a known error promptly; take professional advice before certifying anything you cannot verify.
Practical checklist
Do
- Keep supporting papers for every statement in a statutory filing.
- Disclose material facts even when the form does not ask for them directly, if leaving them out would make the document misleading.
Avoid
- Do not sign or certify a document you know to be inaccurate.
- Do not treat an omission as safe; knowingly omitting a material fact is covered.
Illustrative example
Hypothetical: an omitted guarantee
In a return filed under the Act, a director leaves out a large guarantee the company gave for a related party. The director knew of the guarantee and that it was material.
Document
The return is a document required under the Act.
Omission
A material fact was omitted with knowledge of its materiality.
Consequence
Section 448 makes the director liable under section 447.
Outcome
- A pre-filing check against the board’s guarantee register would have caught the omission.
Glossary
- Material particular
- A detail significant enough to affect how the document would be understood or relied upon.
- Section 447
- The Act’s provision on punishment for fraud, which sets out the consequences that apply under section 448.
Frequently asked questions
Does an honest mistake attract section 448?
The section requires that the person knew the statement was false, or knew the omitted fact was material.
Which documents does it cover?
Any return, report, certificate, financial statement, prospectus, statement or other document required by or for the purposes of the Act or its rules.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026