BIS Act 2016: Penalties, Powers, and Personal Liability for Directors
BIS Act 2016: Penalties, Powers, and Personal Liability for Directors
The BIS Act 2016 is the legal foundation for India's mandatory certification requirements. Understanding its penalties and enforcement powers is essential for every business operating in India.
Key Offences Under BIS Act 2016
False Marking (Using BIS Mark Without Authorization)
- First offence: Minimum 6 months imprisonment (up to 2 years) AND minimum Rs 2 lakh fine (up to Rs 10 lakh)
- Subsequent offences: Minimum 1 year imprisonment (up to 5 years) AND minimum Rs 5 lakh fine (up to Rs 50 lakh)
Non-Conforming Products
- Products not conforming to applicable Indian Standards: Fine up to Rs 5 lakh
Import Without Certification
Products requiring BIS certification imported without it: product confiscation, fines, possible prosecution.
BIS Enforcement Powers
- Search and seizure of premises and products
- Purchase of products from market for testing (without disclosure)
- Coordination with customs for import-level enforcement
- Coordination with e-commerce platforms for delisting
Director Personal Liability — Critical Point
Under the BIS Act, if a company commits an offence, every director, manager, secretary, or officer responsible for conduct of business is personally liable for prosecution. This means BIS compliance is a personal legal risk for company leadership — not just a business risk.
Compounding of Offences
First-time offenders may compound (settle) offences by paying monetary penalties instead of facing prosecution. This option is not available for repeat offenders.
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