For violation of Section 10(1) or 10A(1), 11B(ii) or the Rules made there under: imprisonment for 2 years or/with a fine up to Rs.5000/- both under the Section 25 of the Act.

• For non-submission of statutory returns or for submission of false information - Penalty up to Rs.500.
• On sale of excess/unauthorised tobacco produced: Penalties are levied on sale of excess tobacco produced by registered growers over and above the quota authorized and unauthorised tobacco produced without registration (unauthorised growers) as stipulated by Government of India from time to time.

• An amount of Rs.2/- per kg., and 7.5 per cent of the proceeds of the sale (including a normal service charge of 1 per cent of proceeds payable by growers) shall be contributed to the Tobacco Fund by every registered grower for the excess Flue Cured Virginia tobacco produced by them.
• An amount of Rs.2/- per kg., and 15 per cent of the proceeds of the sale (including a normal service charge of 1 per cent of proceeds payable by growers) shall be contributed to the Tobacco Fund by every unregistered grower for the excess Flue Cured Virginia tobacco produced by him/her.
• An amount of Rs.2/- per kg., and 7.5 per cent of the proceeds of the sale (including a normal service charge of 1 per cent of proceeds payable by growers) shall be contributed to the Tobacco Fund by every registered grower for the excess Flue Cured Virginia tobacco produced by them.

• An amount of Rs.2/- per kg., and 7.5 per cent of the proceeds of the sale (including a normal service charge of 1 per cent of proceeds payable by growers) shall be contributed to the Tobacco Fund by every registered grower for the excess Flue Cured Virginia tobacco produced by them.
• An amount of Rs.2/- per kg., and 15 per cent of the proceeds of the sale (including a normal service charge of 1 per cent of proceeds payable by growers) shall be contributed to the Tobacco Fund by every unregistered grower for the excess Flue Cured Virginia tobacco produced by him/her.