Section 40
Penalty for withholding property, etc.
The Life Insurance Corporation Act, 1956
About this Act
An Act to provide for the nationalisation of life insurance business in India by transferring all such business to a Corporation established for the purpose and to provide for the regulation and control of the business of the Corporation and for matters connected therewith or incidental thereto.
If any person wilfully withholds or fails to deliver to
the Corporation as required by section 13, any property or any books, documents or other papers which
may be in his possession or unlawfully retains possession of any property of an insurer which has been transferred to and vested in the Corporation under this Act or wilfully applies any such property to
purposes other than those expressed in or authorised by this Act, he shall, on the complaint of the
Corporation, be punishable with imprisonment which may extent to one year, or with fine which may
extend to one thousand rupees, or with both.