(1) The Commission may, if it is satisfied that any producer, seller, distributor, trader or service provider included in any cartel, which is alleged to have violated section 3, has made a full and true disclosure in respect of the alleged violations and such disclosure is vital, impose upon such producer, seller, distributor, trader or service provider a lesser penalty as the Commission may deem fit, than leviable under this Act or the rules or the regulations:

Provided that lesser penalty shall not be imposed by the Commission in cases where the applicant making the disclosure does not continue to cooperate with the Commission till the completion of the proceedings before the Commission:

Provided further that the Commission may, if it is satisfied that such producer, seller, distributor, trader or service provider included in the cartel had in the course of proceedings—

1. not complied with the condition on which the lesser penalty was imposed by the Commission; or
2. had given false evidence; or
3. the disclosure made is not vital,

and thereupon such producer, seller, distributor, trader or service provider may be proceeded against in accordance with the provisions of this Act.

(2) If any cartel member who has made an application for lesser penalty under sub-section (1), makes a full and true disclosure of the cartel, including the alleged violations and the role played by such member in the cartel, provides vital evidence, cooperates genuinely and on a continuous basis, and the Commission is satisfied about the genuineness of the application, the Commission may—

1. in respect of the first applicant, reduce the penalty imposed under section 27, by not less than seventy-five per cent;
2. in respect of the second applicant, reduce the penalty imposed under section 27, by not less than fifty per cent;
3. in respect of the third and subsequent applicants, reduce the penalty imposed under section 27, by not less than twenty-five per cent:

Provided that the Commission may impose a lesser penalty than the minimum amount specified above if, in the opinion of the Commission, there are mitigating circumstances.