Correct Answer:
C. Up to 3 years jail or Rs. 1 million fine or both
The question addresses the serious consequences of failing to maintain proper stock records under the relevant Act. The correct answer is 'Up to 3 years jail or Rs. 1 million fine or both' because the legislation imposes stringent penalties, reflecting the importance of accurate record-keeping for transparency and accountability. This foundational concept ensures businesses comply with regulatory standards.
- 'No penalty' is incorrect as the Act clearly specifies severe punishments.
- 'Only Rs. 10,000 fine' is false; the fine is substantially higher, indicating the gravity of the offense.
- 'Only warning' is also incorrect, as non-compliance leads to legal prosecution, not just a warning.