(1) A person shall be deemed to have committed an offense under this Act if he does or causes any of the following acts:-
(a) Construction or operation of water supply service, sanitation service, project or service system without obtaining permission,
(b) If the consumer organization or the licensed organization does not provide water service regularly from the water supply system within the service area specified in the license,
(c) In case of unauthorized use or misuse of water supply and sanitation services,
(d) If the consumer does any act with the intention of taking any unwanted advantage without the approval of the organization in the private channel connected by the licensed organization,
(e) In case of unauthorized use of water by connecting any device from the water pipe,
(f) If any action is taken to pollute the water supply or affect the quantity or flow of water within the watershed area,
(g) If any structure or connected pipe or equipment or connected meter or processing system or other equipment of water service, sanitation service, project or service system is damaged or destroyed,
(h) In case of disposing of waste water with or without human excreta in the sewage system contrary to the prescribed standards or mixing or sending human excreta directly into rivers, streams, lakes, ponds, reservoirs or public land,
(j) If the service level and quality are not maintained according to the quality and standards set by the Government of Nepal or if drinking water is not supplied according to the specified quality,
(N) If the organization that has received the license charges the fee determined in accordance with this Act or the fee contrary to the prescribed basis and standards,
(k) In case of not doing the work required to be done in accordance with this Act and the rules made under this Act or in case of doing work that should not be done.
(2) If anyone commits an offense under sub-section (1), he shall be punished as follows:-
(a) For committing an offense under clause (a), to a fine which may extend to one lakh rupees or to imprisonment for a term which may extend to one year or to both,
(b) Fine up to one lakh rupees in case of offense under clauses (b), (c), (d) and (t),
(c) For an offense under clauses (e) to (h), imprisonment for a term which may extend to three months to one year or with fine which may extend to five lakh rupees or with both.