Section 44

Section 44 creates the civil penalty framework for regulatory non-compliance with information and reporting obligations under the IT Act. The three-tier structure addresses different failure types with different penalty mechanics. First, one-time failures to furnish documents (up to ₹1.5 lakh per failure) — a lump sum sanction for discrete acts of non-compliance such as failing to submit a required report to the Controller. Second, continuing failures to file returns (₹5,000 per day) — a daily accumulating penalty calibrated to compel compliance; non-compliance for 30 days accumulates ₹1.5 lakh. Third, failures to maintain mandatory books or records (₹10,000 per day) — a higher daily rate reflecting the ongoing nature of recordkeeping obligations and the evidentiary harm caused by absent records. These penalties are enforced by Adjudicating Officers under Section 46. Primary targets are Certifying Authorities failing to submit mandated reports to the CCA, body corporates failing to maintain SPDI-related records under the SPDI Rules 2011, and intermediaries failing to respond to mandated information requests. Section 44 operates as a purely civil provision — it runs alongside criminal penalties under other sections and does not require proof of criminal intent.