September 12, 2026

Section 40 – Geographical Indications Act: Penalty for Selling Goods to Which False Geographical Indication is Applied

The Geographical Indications of Goods (Registration and Protection) Act, 1999 — back to Table of Contents

Section 40. Penalty for selling goods to which false geographical indication is applied

Selling, hiring, exposing for sale, or possessing for sale goods bearing a false geographical indication — or lacking a required origin indication under section 71 — attracts the same punishment as section 39 (six months to three years’ imprisonment and fifty thousand to two lakh rupees fine), unless the accused proves one of three defences: that reasonable precautions were taken and there was no reason to suspect the indication’s genuineness; that full information about the source of the goods was given to the prosecutor on demand; or that the person otherwise acted innocently.

As with section 39, courts may impose a reduced sentence or fine for adequate and special reasons recorded in the judgment.