(1)If any person does, or causes to be done, any of the following acts, such person shall be deemed to have committed an offense under this Act:
(a) Knowingly making a false statement in a notice submitted to the Registration Office;
(b) Interfering with the filing of a notice pursuant to this Act; and
(c) Interfering with another person’s right to use, possess, execute, retain or give security in property.
(2) If the Registrar or his or her agent issues false certificates or falsifies or distorts any of records in the Registration Office, he or she shall be deemed to have committed the offense under this Act.
(3) Any person who commits an offence under this Act shall be punished with a fine from fifty thousand rupees to five hundred thousand rupees or with imprisonment for a term not exceeding six months or with both,
depending on the gravity of the offense.
(4) If any person causes loss of or damage to collateral, whether negligently or recklessly, while the collateral is in his or her possession, such person shall be punished with a fine in proportion to the value of the collateral;
and the aggrieved person may recover damages from the person who has  caused such loss or damage negligently or recklessly.
(5) A person who suffers loss or damage from the offense referred to in sub-section (2) shall have the right to recover damages.