Chapter VIII - Miscellaneous
Section 97
Section 97: Manner of crediting penalty
Penalties under section 21 and compounding amounts under section 96 must be credited to a prescribed fund.
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Need advice on Section 97?
This article is for general information. Refer to the Consumer Protection Act, 2019 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
The penalty collected under section 21 and the amount collected under section 96 shall be credited to such fund as may be prescribed.
Key takeaways
Statutory scope
Penalties under section 21 and compounding amounts under section 96 must be credited to a prescribed fund.
Key limit
This is a public-accounting direction, not a separate penalty on the business.
Practical response
When paying an imposed amount, verify the demand, designated payment channel and official receipt.
Apply the statutory test
Match each payment to its underlying order and the officially designated account.
Prepare the response
When paying an imposed amount, verify the demand, designated payment channel and official receipt.
Do not send money to an unofficial account merely because a notice cites section 97.
Illustrative example
A company pays a final section 21 penalty through the notified channel and keeps the challan against the case file.
Official sources
Practical checklist
Do
- When paying an imposed amount, verify the demand, designated payment channel and official receipt.
- Keep dated records of the relevant goods, notices, decisions and official communications.
Avoid
- Do not send money to an unofficial account merely because a notice cites section 97.
Glossary
- Prescribed fund
- The fund identified by rules made under the Act for receiving these sums.
Frequently asked questions
Which receipts are credited under section 97?
Section 21 penalties and section 96 compounding amounts are credited to the prescribed fund.
Does section 97 create a new offence?
No. It directs where the specified collected amounts are credited.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026