FirstCry asked to pay Rs 50,000 compounding fee from Legal Metrology Department

FirstCry has been ordered to pay a compounding fee of ₹50,000 by the Legal Metrology Department in Varanasi. The company received a compounding order from the department on November 16, which was issued by the office of Senior Inspector, Legal Metrology Department, Varanasi.

The compounding fee relates to violations of provisions of Section 18 (1), 36 (1) of Legal Metrology Act, 2009, which deals with manufacturing, packing, selling, pricing etc. of pre-packaged commodities in the prescribed standard quantities or number.

The company sought disposal of the case by compounding procedure under Section 48(3) of the Legal Metrology Act, 2009, it said in an exchange filing.

Compounding of offences under the act will spare entities from prosecution by payment of a fee to the government.

The company said that there was no financial impact except to the extent of compounding fees paid by it.

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The company had also recently completed its four-day GST inspection that was initiated on November 6.

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