Section 9. Compounding of offences

(1) An offence punishable under Section 7 may, before the institution of the prosecution, be compounded by the Competent Authority or after the institution of the prosecution, be compounded by the Competent Authority with the permission of the Special Court on payment of the entire amount due to the depositors with or without interest. (2) Where an offence has been compounded under sub-section (I), no proceeding of further proceeding, as the case may be, shall be taken or continued against the offender in respect of the offence so compounded and the offender, if in custody, shal1 be discharged forthwith.