Famous Chinese film director Zhang Yimou will be fined 7.48 million yuan ($1.23 million) for violating China's family planning policy, local authorities in East China's Jiangsu Province announced on Thursday.

The family planning bureau of the Binhu district of Wuxi in Jiangsu sent a letter to Zhang on Thursday to demand the payment of social maintenance fees, as he is required to pay off the fines within 30 days, according to the announcement published on the official Sina Weibo of the Binhu district government.

Zhang could also apply for an administrative appeal within 60 days or appeal to a local court in three months if he is not satisfied with the decision, according to the local family planning bureau.

The bureau then vowed that the social maintenance fees would be turned over to the national treasury and would be used for society, along with other fiscal incomes of the local government.

This came after Zhang and his current wife, Chen Ting, acknowledged in December that they had raised three children who were born in 2001, 2004 and 2006 respectively, without first acquiring a marriage certificate.

Zhang then apologized to the public via an open letter from his studio, in which the couple expressed their willingness to "accept investigations and punishment in accordance with China's laws and regulations."

The social maintenance fee was collected based on Zhang and Chen's personal incomes of 2000, 2003 and 2005. The fines for their second and third children were twice their annual incomes due to the "serious circumstances," according to the announcement.

While the bureau noted that the income information had been verified by Zhang and Chen, some people still questioned whether Zhang concealed income - Zhang had claimed that he only earned 2,760 yuan in 2000.

However, Zhang previously explained in an interview with the Xinhua News Agency that a film director's income was not stable.

Jia Fangyi, one of the two lawyers who sued Zhang for damaging the public interest in December, told the Global Times that he found the punishment acceptable as it served as a warning to other celebrities and rich people who have violated the family planning policy.

"They use up more social resources and cause inequality, but they often run away from the punishments. The punishment for Zhang is a good start to prove that all people are equal before the law," Jia noted, adding that stricter punishment should be implemented on lawbreakers who tend to shirk their responsibilities.

Zhang, one of the "fifth generation" of Chinese filmmakers, made his directorial debut in 1987 with Red Sorghum. He was chief director of the opening and closing ceremonies of the Beijing Olympic Games.