Section 5
Punishment
5. Punishment :
(1) Whoever, being a foreign national, receives or scholarship lying that he/she is a Nepalese citizen, shall be liable to a punishment with recovery of the amount of scholarship and an additional  imprisonment up to Five years or a fine up to Ten Thousand Rupees or both in addition to the punishment according to other Nepal laws.
(2) Whoever certifies or causes to certify a foreign citizen as Nepalese citizen and in case such foreign citizen receives a scholarship, the person so certifying or causing to certify shall be punished with an
imprisonment of One year and a fine of Two Thousand Rupees in addition to punishment to be imposed as per other Nepal laws.
 (2a) If a person who has gone for study with scholarship pursuant to this Act, does not appear before the Ministry of Education  and Sports to contact after completing his/her study, he/she shall be fined a amount equivalent to the total expenditure paid for him/her while doing study in such scholarship and any donation provided to
him/her for such study by the Government of Nepal or any other institution, if any.
(3) Whoever violates the terms and conditions referred to in Section 4 shall be liable to the punishment as follows: –
(a) Whoever does not engage in the post and place prescribed by Government of Nepal pursuant to
 …….. Sub-section (2) of Section 4 or ceases to be engaged, a fine of up to Ten Thousand Rupees
having recovered the cost.
(b) Whoever, except in case of being unable because of any physical or mental illness or having obtained
prior approval of Government of Nepal, abandons the study or training in between without completing
it as per terms and conditions, a fine of up to Five Thousand Rupees having recovered the cost;
(c) A fine of up to Five Thousand Rupees in case of violation of any other terms and conditions.
(4) For the purpose of Sub-section (3), if any person has contended that he/she was unable because of any physical or mental illness, he/she has to prove it by the  Nepal Medical Board.