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Module: General Practice

Q92: Scenario: "Alpha Corp" delayed filing its FC-GPR form by 2 years. They applied for compounding to RBI on Jan 1, 2025. The compounding order was passed on Feb 1, 2025. Alpha Corp pays the sum on Feb 10, 2025.

Can the Enforcement Directorate (ED) now open an investigation against Alpha Corp for this specific 2-year delay?
A
Yes, ED has independent powers and can investigate anytime.
B
Yes, because the delay was more than 1 year.
C
No, once a contravention is compounded, no further proceeding can be initiated or continued for that specific contravention.
D
No, provided Alpha Corp obtains a "No Objection Certificate" from the ED.
✅ Correct Answer: C
Option C. Concept Definition: The Doctrine of Acquittal.
Structural Breakdown: Section 15(2): Explicitly grants immunity from prosecution/further proceedings for the specific contravention that was compounded.
Logic: Compounding is a settlement.
You cannot settle a debt and then be sued for it again.
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