(1) The 1[State[ Government may sanction the acceptance from any person whose licence, permit, pass or authorization is liable to be cancelled or suspended under the 2[provisions of sections 54 and 56] or who is reasonably suspected of having committed an offence under sections 3[ 4[67A, 67B, 69, 73, 74, 76], 77, 82 or[ 108, of a sum of money in lieu of such cancellation or suspension or by way of composition for the offence which may have been committed, as the case may be; and in all cases in which any property other than the intoxicant, hemp, mhowra flowers or molasses has been seized as liable to confiscation under this Act may release the same on payment of the value thereof as estimated by the 5[State] Government or such officer as the 6[State] Government may authorize in this behalf :
Provided that where a person who is reasonably suspected of having committed an offence under sections 7[69, 70 or] 108 is not the holder of a licence, permit, pass or authorization granted under this Act or a person in the employ of such holder, or a person acting with his express or implied permission, on his behalf, the sum of money which may be accepted from such person by way of composition shall not exceed five hundred rupees :
8[Provided further that, in the case of a person who is reasonably suspected of having committed an offence under section 108 for not more than three occasions, the sum of money which shall be accepted from him by way of composition for the offence, shall,-
(a) for the first offence, be an amount equal to three times the duty or fee evaded by him;
(b) for the second offence, be an amount equal to four times the duty or fee evaded by him; and
(c) for the third offence, be an amount equal to five times the duty or fee evaded by him;
Provided also that, sum money which may be accepted by way of composition for the offence under the second proviso shall be in addition to the duty or fee to be paid by him under this Act.]
(2) On the payment by such person of such sum of money, or such value or both as the case may be, such person, if in custody, shall be set at liberty and the property seized may be released and if any proceedings shall have been instituted against such person in any Criminal Court, the composition shall be held to amount to an acquittal and in no case shall any further proceedings be taken against such person or property with reference to the same facts.
Provided that where a person who is reasonably suspected of having committed an offence under sections 7[69, 70 or] 108 is not the holder of a licence, permit, pass or authorization granted under this Act or a person in the employ of such holder, or a person acting with his express or implied permission, on his behalf, the sum of money which may be accepted from such person by way of composition shall not exceed five hundred rupees :
8[Provided further that, in the case of a person who is reasonably suspected of having committed an offence under section 108 for not more than three occasions, the sum of money which shall be accepted from him by way of composition for the offence, shall,-
(a) for the first offence, be an amount equal to three times the duty or fee evaded by him;
(b) for the second offence, be an amount equal to four times the duty or fee evaded by him; and
(c) for the third offence, be an amount equal to five times the duty or fee evaded by him;
Provided also that, sum money which may be accepted by way of composition for the offence under the second proviso shall be in addition to the duty or fee to be paid by him under this Act.]
(2) On the payment by such person of such sum of money, or such value or both as the case may be, such person, if in custody, shall be set at liberty and the property seized may be released and if any proceedings shall have been instituted against such person in any Criminal Court, the composition shall be held to amount to an acquittal and in no case shall any further proceedings be taken against such person or property with reference to the same facts.
Source footnotes
1 This word was substituted for the word "Provincial" by the Adaptation of Laws Order, 1950.2 These words and figures were substituted for the words "provisions of this Act" by Mah. 52 of 2005, s. 35 (1).
3 These figures and word were inserted by Bom. 26 of 1952, s. 40.
4 These figures and letter were substituted for the figures "69, 70" by Mah. 52 of 2005, s. 35 (b).
5 This word was substituted for the word "Provincial" by the Adaptation of Laws Order, 1950.
6 This word was substituted for the word "Provincial" by the Adaptation of Laws Order, 1950.
7 These figures and word were inserted by Bom. 26 of 1952, s. 40.
8 This proviso was substituted by Mah. 52 of 2005, s. 35 (c).
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 3 · Commissioner of Prohibition and Excise.Section 4 · Collectors.Section 5 · Subordinate officers.Section 6 · Investing officers of Police and other departments with powers and duties under this Act.Section 6A · Board of Experts.Section 7 · Other Boards and committees.India Code, Government of India. Text fetched 22 Oct 2026. Source metadata reports last modification: 2021-02-23. Check the linked official text and subsequent notifications when applying a provision.