Section 539 - Penalty for falsification of books. - Companies Act, 1956

Penalty for falsification of books. 539. If with intent to defraud or deceive any person, any officer or member of a company in respect of which an application has been made under section 397 or 398 (a) destroys, mutilates, alters, falsifies or secrets any books, papers or securities, or is privy to the destruction, mutilation, alteration, falsification, or secreting of any books, papers or securities; or (b) makes, or is privy to the making of, any false or fraudulent entry in any register, books of account or document belonging to the company, he shall be punishable with imprisonment for a term which may extend to seven years, and shall also be liable to fine.