Rules 32 and 32A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 32 sets a fine for breach of the Rules where no other punishment is provided. Rule 32A sets the sums for which certain offences under the Act can be compounded, at different levels for retailers and wholesale dealers on one side and manufacturers and importers on the other. The consolidated text shows several generations of both rules, so this article takes them in order.
Under the current wording of rule 32, whoever contravenes a provision of the Rules for which no punishment is provided is punished with a fine of Rs 5,000. Under rule 32A, compounding sums are Rs 2,000 / 10,000 for section 29, Rs 5,000 / 25,000 for section 36(1) and Rs 10,000 / 50,000 for section 36(2), the lower figure for retailers or wholesale dealers and the higher for manufacturers or importers. The sum cannot exceed the maximum fine for the offence, and the Act's compounding section has its own limits.
Rule 32: the fine, in layers
The consolidation prints the rule more than once. The layers are:
| Layer | Text |
|---|---|
| 2011 original, sub-rule (1) | Contravention of rules "27 to 31": fine of Rs 4,000. G.S.R. 385(E) of 14 May 2015 narrowed "27 to 31" to "27 and 28" |
| 2011 original, sub-rule (2) | Contravention of "any other provision of these rules, for the contravention of which no punishment has been provided either in the Act or in the rules": fine of Rs 2,000. The words "either in the Act or in the rules" were omitted by G.S.R. 385(E) |
| Sub-rule (3) | Compounding sums table, substituted by G.S.R. 359(E) of 6 June 2013 (four rows) |
| Substituted rule 32 | "Whoever contravenes any provisions of these rules, for which no punishment is provided, shall be punished with fine of five thousand rupees." The footnote at the end of the printed rule 32A refers to G.S.R. 629(E) of 23 June 2017, in force from 1 January 2018 |
The footnote arrangement in the scan is not clean, so the source of the Rs 5,000 version should be confirmed in the gazette; the footnote marker on the heading "32." matches the G.S.R. 629(E) note after the table of rule 32A. Reading the text as it stands, the current rule is the single Rs 5,000 fine. It replaces the earlier two-tier structure (Rs 4,000 for rules 27 and 28, Rs 2,000 for the rest).
The limits of a rule-made fine
A rule cannot create a penalty by itself. The Act lets the Central Government provide in its rules that a breach "shall be punishable with fine which may extend to five thousand rupees" (section 52(3), as enacted). Rule 32's Rs 5,000 sits at that ceiling. The Jan Vishwas (Amendment of Provisions) Act, 2026 substitutes that wording in section 52(3) with "shall liable to penalty which may extend to five lakh rupees and suspension, or as the case may be, revocation". That Act is in force only from the date the Central Government notifies; check the notification. Rule 32 has not been re-made under it in the consolidation we hold.
The Rules that this fine can reach include rule 27 (registration), rule 28 (shorter address), rule 6 (declarations) and the rest. Where the Act itself punishes the conduct, for example section 36, that punishment applies to the conduct and rule 32 does not. See section 36 and rule 20 on action after inspection.
If you have received a notice citing rule 32 or an offer of compounding, our legal dispute resolution service can help you weigh the options.
Rule 32A: compounding sums
Rule 32A, "Sum of compounding of offences", says the sums for offences committed under the Act are as in the Table. The earlier version (sub-rule (3) of rule 32, 2013) had four rows; the 32A version has three.
| Sr. | Offence | If the application is by retailers or wholesale dealers | If the application is by manufacturers or importers |
|---|---|---|---|
| 1 | Contravention of section 29 | Rs 2,000 | Rs 10,000 |
| 2 | Contravention of section 36(1) | Rs 5,000 | Rs 25,000 |
| 3 | Contravention of section 36(2) | Rs 10,000 | Rs 50,000 |
The 2013 version had a fourth row: "Selling of products for more than the maximum retail price", Rs 2,000 for retailers or wholesale dealers and Rs 5,000 for manufacturers or importers. It does not appear in rule 32A. The text does not say which section of the Act that row related to, and does not say why it was dropped.
What the three rows cover
- Section 29: quoting, publishing or announcing a price, issuing a price list, invoice or advertisement, or indicating the net quantity of a pre-packaged commodity otherwise than in standard units (section 11).
- Section 36(1): manufacturing, packing, importing, selling, distributing or possessing for sale a pre-packaged commodity that does not conform to the declarations on the package.
- Section 36(2): manufacturing, packing or importing a pre-packaged commodity with error in net quantity as may be prescribed.
The table is split by who applies, not by the gravity of the facts. A retailer who sells a non-conforming pack is charged the retailer column; the maker of the same pack, the manufacturer column.
Who can compound, and the limits in the Act
Section 48 of the Act controls compounding. As enacted:
- Sub-section (1): offences under section 25, sections 27 to 39, sections 45 to 47, or any rule made under section 52(3) may be compounded before or after prosecution on payment of "such sum as may be prescribed".
- Sub-section (2): the Director or an authorised legal metrology officer may compound offences under section 25 and sections 27 to 39 or a rule under section 52(3).
- Sub-section (3): the Controller or an authorised officer may compound offences under sections 25, 27 to 31, 33 to 37, 45 to 47 and rules under section 52(3). The proviso says the sum "shall not, in any case, exceed the maximum amount of the fine" for the offence.
- Sub-section (4): no compounding for a person who commits the same or similar offence within three years of the date the first offence was compounded; after three years it is treated as a first offence.
- Sub-section (5): once compounded, no further proceeding for that offence. Sub-section (6): no compounding except as section 48 provides.
Note that section 36 sits in the Controller's list (33 to 37) as well as the Director's list (27 to 39), but section 29 is in the Director's list and also in the Controller's (27 to 31). See section 48 on compounding of offences for the full section.
Layers for sections 29, 36 and 48
| Section | As enacted (2010) | After the 2023 Act (in force) | 2026 Act (in force only when notified) |
|---|---|---|---|
| 29 | Fine up to Rs 10,000; second or later offence, imprisonment up to one year or fine or both | Fine up to Rs 50,000; second offence up to Rs 1 lakh; third or later up to Rs 2 lakh | Improvement notice for the first offence; second offence penalty up to Rs 50,000; later offences not less than Rs 1 lakh and up to Rs 2 lakh |
| 36(1) | Fine up to Rs 25,000; second up to Rs 50,000; later not less than Rs 50,000 and up to Rs 1 lakh, or imprisonment up to one year, or both | Not amended | Improvement notice; second offence up to Rs 5 lakh; later not less than Rs 25 lakh and up to Rs 50 lakh; extends to digital sales |
| 36(2) | Not less than Rs 10,000 and up to Rs 50,000; second and later up to Rs 1 lakh or imprisonment, or both | Not amended | Not less than Rs 10,000 and up to Rs 1 lakh; second up to Rs 5 lakh; third or later up to Rs 50 lakh, or imprisonment up to one year, or both |
| 48 | As above | Section 41 added to the compoundable offences | Section substituted: sections 25 to 39, 41, 45 to 47 and rules under section 53(3) are compoundable; cognizance only on a written complaint by the Director, Controller or authorised officer |
Because the 2023 Act raised the maximum fine for section 29 to Rs 50,000 for a first offence, the rule 32A sums for section 29 (Rs 2,000 and Rs 10,000) remain below that ceiling. Whether rule 32A will be revised after the 2026 Act is not stated in any source we hold.
Practical examples
Example 1. A retailer is found selling a pack that does not conform to its declarations under section 36(1). If it applies for compounding and the authority accepts, the sum under rule 32A is Rs 5,000. The manufacturer of that pack, applying for compounding of the same offence, would be Rs 25,000.
Example 2. A packer fails to register under rule 27. Rule 32 (current wording) provides a fine of Rs 5,000. Rule 32A does not list that contravention, but section 48(1) makes contraventions of rules made under section 52(3) compoundable for a sum "as may be prescribed", and the consolidation gives no sum for it.
Example 3. A manufacturer compounded a section 36(1) offence two years ago and is caught again. Section 48(4) bars compounding for the same or a similar offence within three years.
Need help with a fine or a compounding offer?
Whether to compound, how to apply and whether the three-year bar affects you depend on the section, your role and the record. Our legal dispute resolution service can help you review the notice, the compounding route and the likely sums before you respond.
Key takeaways
- Rule 32, as it now reads, fines any contravention of the Rules that has no other punishment at Rs 5,000.
- Earlier wording had Rs 4,000 for rules 27 and 28 and Rs 2,000 for other breaches.
- Rule 32A sets compounding sums for sections 29, 36(1) and 36(2), at different levels for retailers or wholesalers and for manufacturers or importers.
- The compounding sum cannot exceed the maximum fine for the offence, and repeat offences within three years cannot be compounded.
- The 2023 Act raised the section 29 fine; the 2026 Act rewrites sections 29, 36 and 48 but only once notified.
- Rules as amended up to March 2022; check later amendments.
Read next
- Section 48 of the Legal Metrology Act, 2009: Compounding of offences
- Section 36 of the Legal Metrology Act, 2009: Penalty for non-standard packages
- Rule 27 of the Packaged Commodities Rules, 2011: Registration of manufacturers, packers and importers
- How to apply for compounding of an offence
Disclaimer: Based on the Legal Metrology (Packaged Commodities) Rules, 2011 (as amended up to March 2022; check later amendments) and the Legal Metrology Act, 2009 (Act 1 of 2010) as enacted, read with the Jan Vishwas (Amendment of Provisions) Act, 2023 (in force; it amends sections 29 and 48 and does not amend section 36) and the Jan Vishwas (Amendment of Provisions) Act, 2026 (in force only from the date the Central Government notifies), as on 30 September 2026. State Legal Metrology rules, later amendments and notifications change; verify the current position before acting.