Step 1: Conciliation under POSH Act.
Conciliation can be initiated only at the request of the aggrieved woman before the inquiry begins.
Step 2: Statutory restriction.
The Act clearly prohibits monetary settlement as the basis of conciliation.
Step 3: Effect of settlement.
Once conciliation is arrived at, no further inquiry shall be conducted by the Internal Committee.
Step 4: Conclusion.
Thus, the false statement is (B).