What is compounding? Compounding refers to a process whereby the defaulting person or entity may file an application to the notified compounding authority, accepting the commission of an offence, and pleading for its condonation. The compounding authority may compound the offence after the defaulter deposits a compounding fee. If the offence is compounded before the institution of prosecution proceedings, then no proceedings are initiated against the defaulter. If an offence is compounded after the institution…