Rule 54: Compounding of offences

Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026

Rule 54 — Governs compounding of offences and the rights, duties, powers or procedure expressly stated in this rule. Key operative text: (1) The officer authorised by the Central Government, (hereinafter in this rule referred to as the ―compounding officer‖) by notification, for the purposes of compounding of offences under sub-section (1) of section 138 shall…

Full notified rule textG.S.R. 344(E), 8 May 2026Source checked: 20 August 2026

Rule status

Social Security (Central) Rules, 2026 were finally notified under G.S.R. 344(E), 8 May 2026. The Central Rules must be read with the Code and any later amendment/corrigendum.

Official Gazette

Open the notified Rules ↗

Finin2min analysis — operative rule mechanics

Operative clauses

(1) The officer authorised by the Central Government, (hereinafter in this rule referred to as the ―compounding officer‖) by notification, for the purposes of compounding of offences under sub-section (1) of section 138 shall issue electronically a compounding notice in Form-XXIV for the offences which are compoundable under section 138.
(2) The person so noticed under sub-section(1) may apply in Part III of the Form-XXIV to the officer electronically and deposit the entire compounding amount by electronic transfer or otherwise, within fifteen days of the receipt of the notice.
(3) The Compounding Officer shall issue a composition certificate in Part IV of Form-XXIV within ten days of receipt of the composition amount, to such person from whom such amount has been received in satisfaction of the composition notice.
(4) If a person so noticed fails to deposit the composition amount within the time specified by the Officer, the prosecution shall be instituted after one month from the last date of specified time before the Competent Court against such person for the offences in respect of which the compounding notice was issued.
(5) For the compounding of an offence after the institution of prosecution in a Competent Court in respect thereof, the provisions of sub-section (6) of section 138 shall apply.

Provisos / explanations

No proviso/explanation was separately extracted from this rule.

Thresholds & timelines

(2) The person so noticed under sub-section(1) may apply in Part III of the Form-XXIV to the officer electronically and deposit the entire compounding amount by electronic transfer or otherwise, within fifteen days of the receipt of the notice.
(3) The Compounding Officer shall issue a composition certificate in Part IV of Form-XXIV within ten days of receipt of the composition amount, to such person from whom such amount has been received in satisfaction of the composition notice.
(4) If a person so noticed fails to deposit the composition amount within the time specified by the Officer, the prosecution shall be instituted after one month from the last date of specified time before the Competent Court against such person for the offences in respect of which the compounding notice was issued.

Mapped Code sections

Section 138

Full notified text — Rule 54

English rule text transcribed from the final official 2026 Gazette PDF; layout is normalised for web reading. The Gazette controls.

54. Compounding of offences.–(1) The officer authorised by the Central Government, (hereinafter in
this rule referred to as the ―compounding officer‖) by notification, for the purposes of compounding
of offences under sub-section (1) of section 138 shall issue electronically a compounding notice in
Form-XXIV for the offences which are compoundable under section 138.
(2) The person so noticed under sub-section(1) may apply in Part III of the Form-XXIV to the officer
electronically and deposit the entire compounding amount by electronic transfer or otherwise, within
fifteen days of the receipt of the notice.

(3) The Compounding Officer shall issue a composition certificate in Part IV of Form-XXIV within
ten days of receipt of the composition amount, to such person from whom such amount has been
received in satisfaction of the composition notice.

(4) If a person so noticed fails to deposit the composition amount within the time specified by the
Officer, the prosecution shall be instituted after one month from the last date of specified time before
the Competent Court against such person for the offences in respect of which the compounding notice
was issued.

(5) For the compounding of an offence after the institution of prosecution in a Competent Court in
respect thereof, the provisions of sub-section (6) of section 138 shall apply.

                                             CHAPTER XII

                      EMPLOYMENT INFORMATION AND MONITORING

Application and evidence

Primary statutory test — (1) The officer authorised by the Central Government, (hereinafter in this rule referred to as the ―compounding officer‖) by notification, for the purposes of compounding of offences under sub-section (1) of section 138 shall issue electronically a compounding notice in Form-XXIV for the offences which are compoundable under section 138.
Additional operative limb — (2) The person so noticed under sub-section(1) may apply in Part III of the Form-XXIV to the officer electronically and deposit the entire compounding amount by electronic transfer or otherwise, within fifteen days of the receipt of the notice.
Numerical or timing control — (2) The person so noticed under sub-section(1) may apply in Part III of the Form-XXIV to the officer electronically and deposit the entire compounding amount by electronic transfer or otherwise, within fifteen days of the receipt of the notice.
Code Section mapping — 138. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
Prescribed-form link recorded in the corpus — XXIV. Confirm the current notified form/version before filing.
Evidence file — retain facts and records proving the role/status of: Central Government.

Cross-references & prescribed forms

Sections cited/mapped

Section 138

Forms

XXIV

Worked example

When an event triggers compounding of offences, record the trigger date, competent authority, prescribed rule/form, filing or decision step, service/acknowledgement and final outcome. A statutory point to test is: “(2) The person so noticed under sub-section(1) may apply in Part III of the Form-XXIV to the officer electronically and deposit the entire compounding amount by electronic transfer or otherwise, within fifteen days of the receipt of the notice.” Reconcile the mapped Code Section(s) 138. Use the current notified XXIV where the process requires it.

Illustrative only. Use the exact notified rule, prescribed form and competent authority.

Q&A — Rule 54

What is Rule 54 of the Social Security (Central) Rules, 2026?

What does Rule 54 require or permit?

A principal operative clause extracted from the notified rule is: “(1) The officer authorised by the Central Government, (hereinafter in this rule referred to as the ―compounding officer‖) by notification, for the purposes of compounding of offences under sub-section (1) of section 138 shall issue electronically a compounding notice in Form-XXIV for the offences which are compoundable under section 138.” Read it with all sub-rules and provisos below.

Does Rule 54 contain a proviso or explanation?

No standalone proviso or explanation was extracted from this rule text. Check the complete rule below for clause-level conditions.

What deadline, period, percentage or amount appears in Rule 54?

The rule contains this numerical/time expression: “(2) The person so noticed under sub-section(1) may apply in Part III of the Form-XXIV to the officer electronically and deposit the entire compounding amount by electronic transfer or otherwise, within fifteen days of the receipt of the notice.” Apply it only in its notified context.

Which Code sections are linked to Rule 54?

The current concordance maps Rule 54 to Section(s) 138.

Which form is connected with Rule 54?

The current corpus records: XXIV. Confirm the current notified version before use.

When did Rule 54 come into force?

The final Central Rules were notified as G.S.R. 344(E), 8 May 2026; Rule 1 states that the Rules come into force on publication. Check any later amendment or corrigendum before reliance.

Primary sources

Social Security (Central) Rules, 2026 — official Gazette PDF ↗

Code on Social Security, 2020 — India Code ↗

Source check: 20 August 2026.

Jurisdiction note: This is the Central Rule corpus. Check State rules/notifications where the State Government is the appropriate Government and check later Gazette amendments before acting.