Section 334: Falsification of records

334. Falsification of records (1) Any director, employee, or shareholder of a company who, with intent to defraud or deceive a person— (a) destroys, parts with, mutilates, alters, or falsifies, or is a party to the destruction, mutilation, alteration, or falsification of any register, accounting records, book, paper, or other document belonging or relating to the company; or (b) makes, or is a party to the making of, a false entry in any register, accounting records, book, paper, or other document belonging or relating to the company, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 1,000,000 rupees and to imprisonment for a term not exceeding 5 years. (2) Any person who, in relation to a mechanical, electronic, or other device used in connection with the keeping or preparation of any register, accounting or other records, index, book, paper, or other document for the purposes of a company or this Act— (a) records or stores in the device, or makes available to a person from the device, matter that he knows to be false or misleading in a material particular; or (b) knowingly destroys, removes, or falsifies any matter recorded or stored in the device, or knowingly fails or omits to record or store any matter in the device, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 1,000,000 rupees and to imprisonment for a term not exceeding 5 years. C35 – 197 [Issue 1] Companies Act