Section 41 of CEA : Section 41: Monetary Penalty For Non-Registration

Explanation using Example

Imagine a scenario where Dr. Smith, a general practitioner, opens a small clinic named "Smith Care" without registering it as required by the Clinical Establishments (Registration and Regulation) Act, 2010. A health inspector conducts a surprise inspection and discovers that "Smith Care" is not registered. Under Section 41(1) of the Act, Dr. Smith may face a monetary penalty of up to fifty thousand rupees for this first contravention.

If Dr. Smith continues to operate without registration and is caught a second time, the penalty could increase to up to two lakh rupees, and for any subsequent contravention, the penalty could go up to five lakh rupees, as per the progressive penalty structure outlined in the same subsection.

Additionally, if Dr. Smith employs a nurse, Alex, who knows that the clinic is not registered but continues to work there, Alex could also be liable for a monetary penalty up to twenty-five thousand rupees under Section 41(2).

Before any penalty is imposed, the authority would conduct an inquiry, as mentioned in Section 41(3) and (4), where Dr. Smith and Alex would have the opportunity to be heard. The authority would consider factors such as the size and type of "Smith Care" and the local conditions before deciding the penalty amount (Section 41(5)).

If Dr. Smith or Alex disagrees with the penalty, they have the right to appeal to the State Council within three months as per Section 41(6) and (7).