Section 42 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.
Section 42 stops anyone from claiming that a geographical indication is registered when it is not, from claiming it is registered for goods it does not cover, or from overstating the exclusive right that registration gives. Since the Jan Vishwas (Amendment of Provisions) Act, 2023, a breach is no longer met with imprisonment: it makes the person liable to a money penalty equal to one-half per cent of turnover or five lakh rupees, whichever is less. If you are using "registered GI" claims in your marketing, our legal notice drafting team can review them before a complaint arrives.
No person may represent that an unregistered indication is registered, that a registered one is registered for goods it does not cover, or that registration gives an exclusive right where the register's limitation says it does not (sub-section (1)). Under sub-section (2), as substituted by the Jan Vishwas Act, 2023, a contravention makes the person liable to a penalty of one-half per cent of total sales or turnover (or gross receipts in profession) as computed in audited accounts, or five lakh rupees, whichever is less. Sections 43 and 44 now stand omitted.
What the amending Acts did
The Tribunals Reforms Act, 2021 does not list section 42. The Jan Vishwas Act, 2023 (item 31, clause (B)) substitutes the punishment in sub-section (2). Before the Jan Vishwas Act, 2023 sub-section (2) read: "he shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both." The text we read prints no commencement date for the substitution, so none is given here.
Sub-section (1): three forbidden representations
"No person shall make any representation":
| Clause | Forbidden claim |
|---|---|
| (a) | With respect to a geographical indication, not being a registered geographical indication, that it is registered |
| (b) | That a registered geographical indication is registered in respect of goods for which it is not in fact registered |
| (c) | That registration gives an exclusive right to use in circumstances in which, having regard to a limitation entered on the register, it does not in fact give that right |
Clause (a) is the plain false claim. Clause (b) is the over-claim: the indication is registered for one class of goods, but the seller says it is registered for another. Clause (c) deals with limitations on the register. Registration may be limited, and a producer may not boast of a wider right than the register records. The register and its Parts are explained in the articles on section 7 and section 8.
Sub-section (2): the new penalty
As amended, section 42(2) reads: "If any person contravenes any of the provisions of sub-section (1), he shall be liable to penalty of a sum equal to one-half per cent. of the total sales or turnover, as the case may be, in business or of the gross receipts in profession as computed in the audited accounts of such person, or a sum equal to five lakh rupees, whichever is less."
How the figure is worked out:
- Take the person's total sales or turnover in business, or gross receipts in profession, as computed in the audited accounts.
- Take one-half per cent of that figure.
- Compare it with five lakh rupees.
- The lower of the two is the penalty.
| Audited turnover (invented) | One-half per cent | Five lakh rupees | Penalty (whichever is less) |
|---|---|---|---|
| Rs 40,00,000 | Rs 20,000 | Rs 5,00,000 | Rs 20,000 |
| Rs 1,00,00,000 | Rs 50,000 | Rs 5,00,000 | Rs 50,000 |
| Rs 10,00,00,000 | Rs 5,00,000 | Rs 5,00,000 | Rs 5,00,000 |
| Rs 50,00,00,000 | Rs 25,00,000 | Rs 5,00,000 | Rs 5,00,000 |
The figures are illustrations of the formula only. The text does not say which year's accounts are to be used; it says "as computed in the audited accounts of such person". The text also does not say what happens where a person has no audited accounts.
Penalty or offence?
The word the amendment uses is "liable to penalty". It no longer says "punishable". Section 37A lets the Registrar authorise an adjudicating officer to hold an inquiry and impose "penalty under the provisions of this Act". The text we read does not say in terms that section 42(2) penalties must go to an adjudicating officer, but it is the clearest penalty provision in the Act now, and the appeal under section 37B is available against any adjudicating officer's order. The article on section 37A sets out that route.
By contrast, sections 39, 40 and 41 remain offences with imprisonment and fine, tried by a court.
| Provision | Consequence now | Decided by |
|---|---|---|
| s.39 | Imprisonment six months to three years and fine fifty thousand to two lakh rupees | Court |
| s.40 | Same as section 39 | Court |
| s.41 | Imprisonment one to three years and fine one lakh to two lakh rupees | Court |
| s.42(2) | Penalty: one-half per cent of turnover or five lakh rupees, whichever is less | Penalty route, as the text gives it |
| ss.43, 44 | Omitted | Not applicable |
Sub-section (3): when "registered" does not mean registration here
Using in India, in relation to a geographical indication, the words "registered geographical indication" or any other expression, symbol or sign like "R.G.I." referring to registration, expressly or impliedly, is deemed to refer to registration in the register under this Act. There are three exceptions:
- (a) the word or sign is used in direct association with other words, in characters at least as large, indicating that the reference is to registration under the law of a country outside India under whose law the registration is in fact in force;
- (b) the expression, symbol or sign is of itself such as to indicate that the reference is to such foreign registration; or
- (c) the word is used in relation to a geographical indication registered under the law of a country outside India and solely to goods to be exported to that country for use there.
So a pack carrying "R.G.I." is read as a claim of Indian registration unless one of the three exceptions applies.
Sections 43 and 44 are omitted
The Jan Vishwas Act, 2023 omits sections 43 and 44. As enacted, section 43 dealt with improperly describing a place of business as connected with the Geographical Indications Registry, and section 44 with falsification of entries in the register. Neither is now part of the Act, and no separate article covers them.
Drafting point. Section 50(1) as printed still speaks of complaints for offences under "section 42 or section 43 or section 44", and the Jan Vishwas text we read does not amend section 50. Read together, section 50 now has work to do only for section 42. The cognizance rules are covered in the article on section 50.
Example
Latha Foods sells an invented mountain-honey indication that has not been registered, with the letters "R.G.I." printed on the jar. Section 42(1)(a) and (3) apply. If its audited turnover is Rs 2 crore, one-half per cent is Rs 1,00,000, which is lower than five lakh rupees, so the penalty is Rs 1,00,000 on the formula.
What the section does not say
- It does not say which officer imposes the section 42(2) penalty; sub-section (2) says only "liable to penalty".
- It does not set a minimum penalty.
- It does not say that intent is required; the contravention is making the representation.
Practical points
- Before printing "registered" or "R.G.I.", check the register entry, the goods and any limitation.
- Foreign registration claims must follow the exceptions in sub-section (3).
- Keep audited accounts ready; the penalty is computed on them.
Need help reviewing your registration claims?
A wrong "registered" claim on a label or website can now cost a turnover-based penalty. Our legal notice drafting team can check your claims against the register and, if someone else is misusing the word "registered" about an indication, prepare the notice.
Key takeaways
- Section 42(1) forbids three false representations about registration.
- Sub-section (2) was substituted by the Jan Vishwas Act, 2023: a penalty of one-half per cent of turnover or five lakh rupees, whichever is less.
- Before that, it was imprisonment up to three years, or fine, or both.
- "R.G.I." and similar expressions are read as Indian registration claims, subject to the three foreign-registration exceptions.
- Sections 43 and 44 are omitted.
Read next
- Section 37A: adjudication of penalties by the adjudicating officer
- Section 37B: appeal against an adjudication order
- Section 50: cognizance and police search and seizure
- Infringement of geographical indication: penalties
Disclaimer: Based on the Geographical Indications of Goods (Registration and Protection) Act, 1999 read with the Tribunals Reforms Act, 2021 and the Jan Vishwas (Amendment of Provisions) Act, 2023, as consulted on 1 October 2026. Forms, fees and procedure are set by the rules made under the Act. This article is general information, not legal advice; check the official text before acting.