The Narcotic Drugs and Psychotropic Substances Act, 1985
Administered Ministry: Ministry of Finance / Department of Revenue
Section
Section 63 Procedure in making confiscations.
(1) In the trial of offences under this Act, whether the accused is convicted or acquitted or discharged, the court shall decide whether any article or thing seized under this Act is liable to confiscation under section 60 or section 61 or section 62 and, if it decides that the article is so liable, it may order confiscation accordingly.
(2) Where any article or thing seized under this Act appears to be liable to confiscation under section 60 or section 61 or section 62, but the person who committed the offence in connection therewith is not known or cannot be found, the court may inquire into and decide such liability, and may order confiscation accordingly:
Provided that no order of confiscation of an article or thing shall be made until the expiry of one month from the date of seizure, or without hearing any person who may claim any right thereto and the evidence, if any, which he produces in respect of his claim:
Provided further that if any such article or thing, other than a narcotic drug, psychotropic substance 1[controlled substance], the opium poppy, coca plant or cannabis plant is liable to speedy and natural decay, or if the court is of opinion that its sale would be for the benefit of its owner, it may at any time direct it to be sold; and the provisions of this sub-section shall, as nearly as may be practicable, apply to the net proceeds of the sale.
2* * * * *
(2) Where any article or thing seized under this Act appears to be liable to confiscation under section 60 or section 61 or section 62, but the person who committed the offence in connection therewith is not known or cannot be found, the court may inquire into and decide such liability, and may order confiscation accordingly:
Provided that no order of confiscation of an article or thing shall be made until the expiry of one month from the date of seizure, or without hearing any person who may claim any right thereto and the evidence, if any, which he produces in respect of his claim:
Provided further that if any such article or thing, other than a narcotic drug, psychotropic substance 1[controlled substance], the opium poppy, coca plant or cannabis plant is liable to speedy and natural decay, or if the court is of opinion that its sale would be for the benefit of its owner, it may at any time direct it to be sold; and the provisions of this sub-section shall, as nearly as may be practicable, apply to the net proceeds of the sale.
2* * * * *
1. Ins. by s. 29, ibid. (w.e.f. 2-10-2001).
2. Sub-section (3) omitted by Act 9 of 2001, s. 29 (w.e.f. 2-10-2001).
2. Sub-section (3) omitted by Act 9 of 2001, s. 29 (w.e.f. 2-10-2001).
Section 64 Power to tender immunity from prosecution.
(1) The Central Government or the State Government may, if it is of opinion (the reasons for such opinion being recorded in writing) that with a view to obtaining the evidence of any person appearing to have been directly or indirectly concerned in or privy to the contravention of any of provisions of this Act or of any rule or order made thereunder it is necessary or expedient so to do, tender to such person immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act or State Act, as the case may be, for the time being in force, on condition of his making a full and true disclosure of the whole circumstances relating to such contravention.
(2) A tender of immunity made to, and accepted by, the person concerned, shall, to the extent to which the immunity extends, render him immune from prosecution for any offence in respect of which the tender was made.
(3) If it appears to the Central Government or, as the case may be, the State Government, that any person to whom immunity has been tendered under this section has not complied with the conditions on which the tender was made or is wilfully concealing anything or is giving false evidence, the Central Government or, as the case may be, the State Government, may record a finding to that effect and thereupon the immunity shall be deemed to have been withdrawn and such person may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which he appears to have been guilty in connection with the same matter.
(2) A tender of immunity made to, and accepted by, the person concerned, shall, to the extent to which the immunity extends, render him immune from prosecution for any offence in respect of which the tender was made.
(3) If it appears to the Central Government or, as the case may be, the State Government, that any person to whom immunity has been tendered under this section has not complied with the conditions on which the tender was made or is wilfully concealing anything or is giving false evidence, the Central Government or, as the case may be, the State Government, may record a finding to that effect and thereupon the immunity shall be deemed to have been withdrawn and such person may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which he appears to have been guilty in connection with the same matter.
Section 64A Immunity from prosecution to addicts volunteering for treatment.
1[64A. Immunity from prosecution to addicts volunteering for treatment.-- Any addict, who is charged with an offence punishable under section 27 or with offences involving small quantity of narcotic drugs or psychotropic substances, who voluntarily seeks to undergo medical treatment for de-addiction from a hospital or an institution maintained or recognised by the Government or a local authority and undergoes such treatment shall not be liable to prosecution under section 27 or under any other section for offences involving small quantity of narcotic drugs or psychotropic substances:
Provided that the said immunity from prosecution may be withdrawn if the addict does not undergo the complete treatment for de-addiction.]
Provided that the said immunity from prosecution may be withdrawn if the addict does not undergo the complete treatment for de-addiction.]
1. Subs. by s. 30, ibid., for section 64A (w.e.f. 2-10-2001).
Section 65 [Omitted].
[Power to make rules regulating disposal of confiscated articles and rewards].-- Omitted by the Narcotic Drugs and Psychotropic Substances (Amendment) Act, 1989 (2 of 1989), s. 18 (w.e.f. 29-5-1989).
Section 66 Presumption as to documents in certain cases.
Where any document--
(i) is produced or furnished by any person or has been seized from the custody or control of any person, in either case, under this Act or under any other law, or
(ii) has been received from any place outside India (duly authenticated by such authority or person and in such manner as may be prescribed by the Central Government) in the course of investigation of any offence under this Act alleged to have been committed by a person,
and such document is tendered in any prosecution under this Act in evidence against him, or against him and any other person who is tried jointly with him, the court shall--
(a) presume, unless the contrary is proved, that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the court may reason ably assume to have been signed by, or to be in the handwriting of, any particular person, is in that persons handwriting; and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested;
(b) admit the document in evidence, notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence;
(c) examine any person acquainted with the facts and circumcontrary is proved, the truth of the contents of such document.
(i) is produced or furnished by any person or has been seized from the custody or control of any person, in either case, under this Act or under any other law, or
(ii) has been received from any place outside India (duly authenticated by such authority or person and in such manner as may be prescribed by the Central Government) in the course of investigation of any offence under this Act alleged to have been committed by a person,
and such document is tendered in any prosecution under this Act in evidence against him, or against him and any other person who is tried jointly with him, the court shall--
(a) presume, unless the contrary is proved, that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the court may reason ably assume to have been signed by, or to be in the handwriting of, any particular person, is in that persons handwriting; and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested;
(b) admit the document in evidence, notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence;
(c) examine any person acquainted with the facts and circumcontrary is proved, the truth of the contents of such document.
Section 67 Power to call for information, etc.
Any officer referred to in section 42 who is authorised in this behalf by the Central Government or a State Government may, during the course of any enquiry in connection with the contravention of any provision of this Act,--
(a) call for information from any person for the purpose of satisfying himself whether there has been any contravention of the provisions of this Act or any rule or order made thereunder;
(b) require any person to produce or deliver any document or thing useful or relevant to the enquiry;
(c) examine any person acquainted with the facts and circumstances of the case.
(a) call for information from any person for the purpose of satisfying himself whether there has been any contravention of the provisions of this Act or any rule or order made thereunder;
(b) require any person to produce or deliver any document or thing useful or relevant to the enquiry;
(c) examine any person acquainted with the facts and circumstances of the case.
Section 68 Information as to commission of offences.
No officer acting in exercise of powers vested in him under any provision of this Act or any rule or order made thereunder shall be compelled to say whence he got any information as to the commission of any offence
Section 68A Application.
1, 2[68A. Application.-- (1) The provisions of this Chapter shall apply only to the persons specified in sub-section (2).
(2) The persons referred to in sub-section (1) are the following, namely:--
(a) every person who has been convicted of an offence punishable under this Act with imprisonment for a term of 3[ten] years or more;
(b) every person who has been convicted of a similar offence by a competent court of criminal jurisdiction outside India;
(c) every person in respect of whom an order of detention has been made under the Prevention of IIicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988 (46 of 1988), or under the Jammu and Kashmir Prevention of IIicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988;
4[(cc) every person who has been arrested or against whom a warrant or authorisation of arrest has been issued for the commission of an offence punishable under this Act with imprisonment for a term of ten years or more, and every person who has been arrested or against whom a warrant or authorisation of arrest has been issued for the commission of a similar offence under any corresponding law of any other country.]
Provided that such order of detention has not been revoked on the report of the Advisory Board constituted under the said Acts or such order of detention has not been set aside by a court of competent jurisdiction;
(d) every person who is a relative of a person referred to in clause (a) or clause (b) or clause (c) 4[or clause (cc);]
(e) every associate of a person referred to in clause (a) or clause (b) or clause (c) 4[or clause (cc);]
(f) any holder (hereafter in this clause referred to as the present holder) of any property which was at any time previously held by a person referred to in clause (a) or clause (b) or clause (c) 4[or clause (cc);] unless the present holder or, as the case may be, any one who held such property after such person and before the present holder, is or was a transferee in good faith for adequate consideration.]
(2) The persons referred to in sub-section (1) are the following, namely:--
(a) every person who has been convicted of an offence punishable under this Act with imprisonment for a term of 3[ten] years or more;
(b) every person who has been convicted of a similar offence by a competent court of criminal jurisdiction outside India;
(c) every person in respect of whom an order of detention has been made under the Prevention of IIicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988 (46 of 1988), or under the Jammu and Kashmir Prevention of IIicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988;
4[(cc) every person who has been arrested or against whom a warrant or authorisation of arrest has been issued for the commission of an offence punishable under this Act with imprisonment for a term of ten years or more, and every person who has been arrested or against whom a warrant or authorisation of arrest has been issued for the commission of a similar offence under any corresponding law of any other country.]
Provided that such order of detention has not been revoked on the report of the Advisory Board constituted under the said Acts or such order of detention has not been set aside by a court of competent jurisdiction;
(d) every person who is a relative of a person referred to in clause (a) or clause (b) or clause (c) 4[or clause (cc);]
(e) every associate of a person referred to in clause (a) or clause (b) or clause (c) 4[or clause (cc);]
(f) any holder (hereafter in this clause referred to as the present holder) of any property which was at any time previously held by a person referred to in clause (a) or clause (b) or clause (c) 4[or clause (cc);] unless the present holder or, as the case may be, any one who held such property after such person and before the present holder, is or was a transferee in good faith for adequate consideration.]
1 Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989).
2. Subs. by Act 16 of 2014, s. 19, for "FORFEITURE OF PROPERTY DERIVED FROM, OR USED, IN ILLICIT TRAFFIC" (w.e.f. 1-5-2014).
3. Subs. by Act 9 of 2001, s. 31, for "five" (w.e.f. 2-10-2001).
4. Ins. by s. 31, ibid. (w.e.f. 2-10-2001).
2. Subs. by Act 16 of 2014, s. 19, for "FORFEITURE OF PROPERTY DERIVED FROM, OR USED, IN ILLICIT TRAFFIC" (w.e.f. 1-5-2014).
3. Subs. by Act 9 of 2001, s. 31, for "five" (w.e.f. 2-10-2001).
4. Ins. by s. 31, ibid. (w.e.f. 2-10-2001).
Section 68B Definitions.
1[68B. Definitions. -- In this Chapter, unless the context otherwise requires,
(a) "Appellate Tribunal" means the Appellate Tribunal 2[referred to in] section 68N;
(b) "associate" in relation to a person whose property is liable to be forfeited under this Chapter, means--
(i) any individual who had been or is residing in the residential premises (including out-houses) of such person;
(ii) any individual who had been or is managing the affairs or keeping the accounts of such person;
(iii) any association of persons, body of individuals, partnership firm, or private company within the meaning of the Companies Act, 1956 (1 of 1956), of which such person had been or is a member, partner or director;
(iv) any individual who had been or is a member, partner or director of an association of persons, body of individuals, partnership firm or private company referred to in sub-clause (iii) at any time when such person had been or is a member, partner or director of such association, body, partnership firm or private company;
(v) any person, who had been or is managing the affairs, or keeping the accounts, of any association of persons, body of individuals, partnership firm or private company referred to in sub-clause (iii);
(vi) the trustee of any trust, where,--
(1) the trust has been created by such person; or
(2) the value of the assets contributed by such person (including the value of the assets, if any, contributed by him earlier) to the trust amounts, on the date on which contribution is made, to not less than twenty per cent. of the value of the assets of the trust on that date;
(vii) where the competent authority, for reasons to be recorded in writing, considers that any properties of such person are held on his behalf by any other person, such other person;
(c) "competent authority" means an officer of the Central Government authorised by it under section 68D;
(d) concealment means the concealment or disguise of the nature, source, disposition, movement or ownership of property and includes the movement or conversion of such property by electronic transmission or by any other means;
(e) "freezing" means temporarily prohibiting the transfer, conversion, disposition or movement of property by an order issued under section 68F;
(f) "identifying includes establishment of proof that the property was derived from, or used in, the illicit traffic;
(g) illegally acquired property", in relation to any person to whom this Chapter applies, means,--
(i) any property acquired by such person, whether before or after the commencement of this Chapter, wholly or partly out of or by means of any income, earnings or assets derived or obtained from or attributable to 3[the contravention of any provisions 4[ of this Act or the equivalent value of such property; or]]
(ii) any property acquired by such person, whether before or after the commencement of this Chapter, for a consideration, or by any means wholly or partly traceable to any property referred to in sub-clause (i) or the income or earning from 5[such property or the equivalent value of such property; or[
6[(iii) any property acquired by such person, whether before or after the commencement of the Narcotic Drugs and Psychotropic Substances (Amendment) Act, 2014, wholly or partly out of or by means of any income, earnings or assets the source of which cannot be proved, or the equivalent value of such property,]
and includes--
(A) any property held by such person which would have been, in relation to any previous holder thereof, illegally acquired property under this clause if such previous holder had not ceased to hold it, unless such person or any other person who held the property at any time after such previous holder or, where there are two or more such previous holders, the last of such previous holders is or was a transferee in good faith for adequate consideration;
(B) any property acquired by such person, whether before or after the commencement of this Chapter, for a consideration, or by any means, wholly or partly traceable to any property falling under item (A), or the income or earnings therefrom;
7[(h) "property" means any property or assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible, wherever located and includes deeds and instruments evidencing title to, or interest in, such property or assets;]
(i) relative means
(1) spouse of the person;
(2) brother or sister of the person;
(3) brother or sister of the spouse of the person;
(4) any lineal ascendant or descendant of the person;
(5) any lineal ascendant or descendant of the spouse of the person;
(6) spouse of a person referred to in sub-clause (2), sub-clause (3), sub-clause (4) or sub-clause (5);
(7) any lineal descendant of a person referred to in sub-clause (2) or sub-clause (3);
(j) "tracing" means determining the nature, source, disposition, movement, title or ownership of property;
(k) "trust" includes any other legal obligation.
(a) "Appellate Tribunal" means the Appellate Tribunal 2[referred to in] section 68N;
(b) "associate" in relation to a person whose property is liable to be forfeited under this Chapter, means--
(i) any individual who had been or is residing in the residential premises (including out-houses) of such person;
(ii) any individual who had been or is managing the affairs or keeping the accounts of such person;
(iii) any association of persons, body of individuals, partnership firm, or private company within the meaning of the Companies Act, 1956 (1 of 1956), of which such person had been or is a member, partner or director;
(iv) any individual who had been or is a member, partner or director of an association of persons, body of individuals, partnership firm or private company referred to in sub-clause (iii) at any time when such person had been or is a member, partner or director of such association, body, partnership firm or private company;
(v) any person, who had been or is managing the affairs, or keeping the accounts, of any association of persons, body of individuals, partnership firm or private company referred to in sub-clause (iii);
(vi) the trustee of any trust, where,--
(1) the trust has been created by such person; or
(2) the value of the assets contributed by such person (including the value of the assets, if any, contributed by him earlier) to the trust amounts, on the date on which contribution is made, to not less than twenty per cent. of the value of the assets of the trust on that date;
(vii) where the competent authority, for reasons to be recorded in writing, considers that any properties of such person are held on his behalf by any other person, such other person;
(c) "competent authority" means an officer of the Central Government authorised by it under section 68D;
(d) concealment means the concealment or disguise of the nature, source, disposition, movement or ownership of property and includes the movement or conversion of such property by electronic transmission or by any other means;
(e) "freezing" means temporarily prohibiting the transfer, conversion, disposition or movement of property by an order issued under section 68F;
(f) "identifying includes establishment of proof that the property was derived from, or used in, the illicit traffic;
(g) illegally acquired property", in relation to any person to whom this Chapter applies, means,--
(i) any property acquired by such person, whether before or after the commencement of this Chapter, wholly or partly out of or by means of any income, earnings or assets derived or obtained from or attributable to 3[the contravention of any provisions 4[ of this Act or the equivalent value of such property; or]]
(ii) any property acquired by such person, whether before or after the commencement of this Chapter, for a consideration, or by any means wholly or partly traceable to any property referred to in sub-clause (i) or the income or earning from 5[such property or the equivalent value of such property; or[
6[(iii) any property acquired by such person, whether before or after the commencement of the Narcotic Drugs and Psychotropic Substances (Amendment) Act, 2014, wholly or partly out of or by means of any income, earnings or assets the source of which cannot be proved, or the equivalent value of such property,]
and includes--
(A) any property held by such person which would have been, in relation to any previous holder thereof, illegally acquired property under this clause if such previous holder had not ceased to hold it, unless such person or any other person who held the property at any time after such previous holder or, where there are two or more such previous holders, the last of such previous holders is or was a transferee in good faith for adequate consideration;
(B) any property acquired by such person, whether before or after the commencement of this Chapter, for a consideration, or by any means, wholly or partly traceable to any property falling under item (A), or the income or earnings therefrom;
7[(h) "property" means any property or assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible, wherever located and includes deeds and instruments evidencing title to, or interest in, such property or assets;]
(i) relative means
(1) spouse of the person;
(2) brother or sister of the person;
(3) brother or sister of the spouse of the person;
(4) any lineal ascendant or descendant of the person;
(5) any lineal ascendant or descendant of the spouse of the person;
(6) spouse of a person referred to in sub-clause (2), sub-clause (3), sub-clause (4) or sub-clause (5);
(7) any lineal descendant of a person referred to in sub-clause (2) or sub-clause (3);
(j) "tracing" means determining the nature, source, disposition, movement, title or ownership of property;
(k) "trust" includes any other legal obligation.
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
2. Subs. by Act 28 of 2016, s. 227, for "for Forfeited Property constituted under" (w.e.f. 1-6-2016).
3. Subs. by Act 9 of 2001, s. 32, for "illicit traffic" (w.e.f. 2-10-2001).
4. Subs. by Act 16 of 2014, s, 20, for "of this Act; or" (w.e.f. 1-5-2014).
5. Subs. by Act 16 of 2014, s. 20, for "such property", (w.e.f. 1-5-2014).
6. Ins. by s. 20, ibid. (w.e.f. 1-5-2014).
7. Subs. by s. 20, ibid., for clause (h) (w.e.f. 1-5-2014).
2. Subs. by Act 28 of 2016, s. 227, for "for Forfeited Property constituted under" (w.e.f. 1-6-2016).
3. Subs. by Act 9 of 2001, s. 32, for "illicit traffic" (w.e.f. 2-10-2001).
4. Subs. by Act 16 of 2014, s, 20, for "of this Act; or" (w.e.f. 1-5-2014).
5. Subs. by Act 16 of 2014, s. 20, for "such property", (w.e.f. 1-5-2014).
6. Ins. by s. 20, ibid. (w.e.f. 1-5-2014).
7. Subs. by s. 20, ibid., for clause (h) (w.e.f. 1-5-2014).
Section 68C Prohibition of holding illegally acquired property.
1[68C. Prohibition of holding illegally acquired property.-- (1) As from the commencement of this Chapter, it shall not be lawful for any person to whom this Chapter applies to hold any illegally acquired property either by himself or through any other person on his behalf.
(2) Where any person holds any illegally acquired property in contravention of the provisions of sub-section (1), such property shall be liable to be forfeited to the Central Government in accordance with the provisions of this Chapter:
2[Provided that no property shall be forfeited under this Chapter if such property was acquired, by a person to whom this Act applies, before a period of six years from the date he was arrested or against whom a warrant or authorisation of arrest has been issued for the commission of an offence punishable under this Act or from the date the order or detention was issued, as the case may be.]]
(2) Where any person holds any illegally acquired property in contravention of the provisions of sub-section (1), such property shall be liable to be forfeited to the Central Government in accordance with the provisions of this Chapter:
2[Provided that no property shall be forfeited under this Chapter if such property was acquired, by a person to whom this Act applies, before a period of six years from the date he was arrested or against whom a warrant or authorisation of arrest has been issued for the commission of an offence punishable under this Act or from the date the order or detention was issued, as the case may be.]]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
2. Subs. by Act 9 of 2001, s. 33, for "the proviso" (w.e.f. 2-10-2001).
2. Subs. by Act 9 of 2001, s. 33, for "the proviso" (w.e.f. 2-10-2001).
Section 68D Competent authority. 1 docs
1[68D. Competent authority.-- (1) The Central Government may, by order published in the Official Gazette, authorise 2[any Commissioner of Customs or Commissioner of Central Excise] or Commissioner of Income-tax or any other officer of the Central Government of equivalent rank to perform the functions of the competent authority under this Chapter.
(2) The competent authorities shall perform their functions in respect of such persons or classes of persons as the Central Government may, by order, direct.]
(2) The competent authorities shall perform their functions in respect of such persons or classes of persons as the Central Government may, by order, direct.]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
2 Subs. by Act 16 of 2014, s. 21, for "any Collector of Customs or Collector of Central Excise" (w.e.f. 1-5-2014).
2 Subs. by Act 16 of 2014, s. 21, for "any Collector of Customs or Collector of Central Excise" (w.e.f. 1-5-2014).
Section 68E Identifying illegally acquired property.
1[68E. Identifying illegally acquired property.-- 2(1) Every officer empowered under section 53 and every officer-in-charge of a police station shall, or receipt of information is satisfied that any person to whom this Chapter applies holds any illegally acquired property, he may, after recording reasons for doing so, proceed to take all steps necessary for tracing and identifying such property.
(2) The steps referred to in sub-section (1) may include any inquiry, investigation or survey in respect of any person, place, property, assets, documents, books of account in any bank or public financial institution or any other relevant matters.
(3) Any inquiry, investigation or survey referred to in sub-section (2) shall be carried out by an officer mentioned in sub-section (1) in accordance with such directions or guidelines as the competent authority may make or issue in this behalf.]]
(2) The steps referred to in sub-section (1) may include any inquiry, investigation or survey in respect of any person, place, property, assets, documents, books of account in any bank or public financial institution or any other relevant matters.
(3) Any inquiry, investigation or survey referred to in sub-section (2) shall be carried out by an officer mentioned in sub-section (1) in accordance with such directions or guidelines as the competent authority may make or issue in this behalf.]]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
2. Subs. by Act 9 of 2001, s. 34, for sub- section (1) (w.e.f. 2-10-2001).
2. Subs. by Act 9 of 2001, s. 34, for sub- section (1) (w.e.f. 2-10-2001).
Section 68F Seizure or freezing of illegally acquired property. 2 docs
1[68F. Seizure or freezing of illegally acquired property.-- (1) Where any officer conducting an inquiry or investigation under section 68E has reason to believe that any property in relation to which such inquiry or investigation is being conducted is an illegally acquired property and such property is likely to be concealed, transferred or dealt with in any manner which will result in frustrating any proceeding relating to forfeiture of such property under this Chapter, he may make an order for seizing such property and where it is not practicable to seize such property, he may make an order that such property shall not be transferred or otherwise dealt with, except with the prior permission of the officer making such order, or of the competent authority and a copy of such order shall be served on the person concerned:
Provided that the competent authority shall be duly informed of any order made under this subsection and a copy of such an order shall be sent to the competent authority within forty-eight hours of its being made.
(2) Any order made under sub-section (1) shall have no effect unless the said order is confirmed by an order of the competent authority within a period of thirty days of its being made.
Explanation.-- For the purposes of this section, "transfer of property" means any disposition, conveyance, assignment, settlement, delivery, payment or other alienation of property and, without limiting the generality of the foregoing, includes--
(a) the creation of a trust in property;
(b) the grant or creation of any lease, mortgage, charge, easement, licence, power, partnership or interest in property;
(c) the exercise of a power of appointment of property vested in any person, not the owner of the property, to determine its disposition in favour of any person other than the donee of the power; and
(d) any transaction entered into by any person with intent thereby to diminish directly or indirectly the value of his own property and to increase the value of the property of any other person.]
Provided that the competent authority shall be duly informed of any order made under this subsection and a copy of such an order shall be sent to the competent authority within forty-eight hours of its being made.
(2) Any order made under sub-section (1) shall have no effect unless the said order is confirmed by an order of the competent authority within a period of thirty days of its being made.
Explanation.-- For the purposes of this section, "transfer of property" means any disposition, conveyance, assignment, settlement, delivery, payment or other alienation of property and, without limiting the generality of the foregoing, includes--
(a) the creation of a trust in property;
(b) the grant or creation of any lease, mortgage, charge, easement, licence, power, partnership or interest in property;
(c) the exercise of a power of appointment of property vested in any person, not the owner of the property, to determine its disposition in favour of any person other than the donee of the power; and
(d) any transaction entered into by any person with intent thereby to diminish directly or indirectly the value of his own property and to increase the value of the property of any other person.]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
Section 68G Management of properties seized or forfeited under this Chapter. 1 docs
1[68G. Management of properties seized or forfeited under this Chapter.-- (1) The Central Government may, by order published in the Official Gazette, appoint as many of its officers (not below the rank of a Joint secretary to the Government) as it thinks fit, to perform the functions of an Administrator.
(2) The Administrator appointed under sub-section (1) shall receive and manage the property in relation to which an order has been made under sub-section (1) of section 68F or under section 68-I in such manner and subject to such conditions as may be prescribed.
(3) The Administrator shall also take such measures, as the Central Government may direct, to dispose of the property which is forfeited to the Central Government.]
(2) The Administrator appointed under sub-section (1) shall receive and manage the property in relation to which an order has been made under sub-section (1) of section 68F or under section 68-I in such manner and subject to such conditions as may be prescribed.
(3) The Administrator shall also take such measures, as the Central Government may direct, to dispose of the property which is forfeited to the Central Government.]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
Section 68H Notice of forfeiture of property.
1[68H. Notice of forfeiture of property. -- (1) If, having regard to the value of the properties held by any person to whom this Chapter applies, either by himself or through any other person on his behalf, his known sources of income, earnings or assets, and any other information or material available to it as a result of a report from any officer making an investigation under section 68E or otherwise, the competent authority has reason to believe (the reasons for such belief to be recorded in writing) that all or any of such properties are illegally acquired properties, it may serve a notice upon such person (hereinafter referred to as the person affected) calling upon him within a period of thirty days specified in the notice to indicate the sources of his income, earnings or assets, out of which or by means of which he has acquired such property, the evidence on which he relies and other relevant information and particulars, and to show cause why all or any of such properties, as the case may be, should not be declared to be illegally acquired properties and forfeited to the Central Government under this Chapter.
(2) Where a notice under sub-section (1) to any person specifies any property as being held on behalf of such person by any other person, a copy of the notice shall also be served upon such other person.
2[Provided that no notice for forfeiture shall be served upon any person referred to in clause (cc) of sub-section (2) of section 68A or relative of a person referred to in that clause or associate of a person referred to in that clause or holder of any property which was at any time previously held by a person referred to in that clause.]
3[Explanation.-- For the removal of doubts, it is hereby declared that in a case where the provisions of section 68J are applicable, no notice under this section shall be invalid merely on the ground that it fails to mention the evidence relied upon or it fails to establish a direct nexus between the property sought to be forfeited and any activity in contravention of the provisions of this Act.]]
(2) Where a notice under sub-section (1) to any person specifies any property as being held on behalf of such person by any other person, a copy of the notice shall also be served upon such other person.
2[Provided that no notice for forfeiture shall be served upon any person referred to in clause (cc) of sub-section (2) of section 68A or relative of a person referred to in that clause or associate of a person referred to in that clause or holder of any property which was at any time previously held by a person referred to in that clause.]
3[Explanation.-- For the removal of doubts, it is hereby declared that in a case where the provisions of section 68J are applicable, no notice under this section shall be invalid merely on the ground that it fails to mention the evidence relied upon or it fails to establish a direct nexus between the property sought to be forfeited and any activity in contravention of the provisions of this Act.]]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
2. Ins. by Act 9 of 2001, s. 35 (w.e.f. 2-10-2001).
3. Ins. by Act 16 of 2014, s. 22 (w.e.f. 1-5-2014).
2. Ins. by Act 9 of 2001, s. 35 (w.e.f. 2-10-2001).
3. Ins. by Act 16 of 2014, s. 22 (w.e.f. 1-5-2014).
Section 68-I Forfeiture of property in certain cases 1 docs
1[68-I. Forfeiture of property in certain cases. -- (1) The competent authority may, after considering the explanation, if any, to the show cause notice issued under section 68H, and the materials available before it and after giving to the person affected (and in a case where the person affected holds any property specified in the notice through any other person, to such other person also) a reasonable opportunity of being heard, by order, record a finding whether all or any of the properties in question are illegally acquired properties:
Provided that if the person affected (and in a case where the person affected holds any property specified in the notice through any other person such other person also) does not appear before the competent authority or represent his case before it within a period of thirty days specified in the show cause notice, the competent authority may proceed to record a finding under this sub-section ex parte on the basis of evidence available before it.
(2) Where the competent authority is satisfied that some of the properties referred to in the show cause notice are illegally acquired properties but is not able to identify specifically such properties, then, it shall be lawful for the competent authority to specify the properties which, to the best of its judgment, are illegally acquired properties and record a finding accordingly under sub-section (1).
(3) Where the competent authority records a finding under this section to the effect that any property is illegally acquired property, it shall declare that such property shall, subject to the provisions of this Chapter, stand forfeited to the Central Government free from all encumbrances.
2[Provided that no illegally acquired property of any person who is referred to in clause (cc) of sub-section (2) of section 68A or relative of a person referred to in that clause or associate of a person referred to in that clause or holder of any property which was at any time previously held by a person referred to in that clause shall stand forefeited.]
(4) Where any shares in a company stand forfeited to the Central Government under this Chapter, then, the company shall, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956) or the articles of association of the company, forthwith register the Central Government as the transferee of such shares.]
Provided that if the person affected (and in a case where the person affected holds any property specified in the notice through any other person such other person also) does not appear before the competent authority or represent his case before it within a period of thirty days specified in the show cause notice, the competent authority may proceed to record a finding under this sub-section ex parte on the basis of evidence available before it.
(2) Where the competent authority is satisfied that some of the properties referred to in the show cause notice are illegally acquired properties but is not able to identify specifically such properties, then, it shall be lawful for the competent authority to specify the properties which, to the best of its judgment, are illegally acquired properties and record a finding accordingly under sub-section (1).
(3) Where the competent authority records a finding under this section to the effect that any property is illegally acquired property, it shall declare that such property shall, subject to the provisions of this Chapter, stand forfeited to the Central Government free from all encumbrances.
2[Provided that no illegally acquired property of any person who is referred to in clause (cc) of sub-section (2) of section 68A or relative of a person referred to in that clause or associate of a person referred to in that clause or holder of any property which was at any time previously held by a person referred to in that clause shall stand forefeited.]
(4) Where any shares in a company stand forfeited to the Central Government under this Chapter, then, the company shall, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956) or the articles of association of the company, forthwith register the Central Government as the transferee of such shares.]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
2. Ins. by Act 9 of 2001, s. 36 (w.e.f. 2-10-2001).
2. Ins. by Act 9 of 2001, s. 36 (w.e.f. 2-10-2001).
Section 68J Burden of proof
1[68J. Burden of proof.-- In any proceedings under this Chapter, the burden of proving that any property specified in the notice served under section 68H is not illegally acquired property shall be on the person affected.]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
Section 68K Fine in lieu of forfeiture 1 docs
1[68K. Fine in lieu of forfeiture. -- (1) Where the competent authority makes a declaration that any property stands forfeited to the Central Government under section 68-I and it is a case where the source of only a part of the illegally acquired property has not been proved to the satisfaction of the competent authority, it shall make an order giving an option to the person affected to pay, in lieu of forfeiture, a fine equal to the market value of such part.
(2) Before making an order imposing a fine under sub-section (1), the person affected shall be given a reasonable opportunity of being heard.
(3) Where the person affected pays the fine due under sub-section (1), within such time as may be allowed in that behalf, the competent authority may, by order, revoke the declaration of forfeiture under section 68-I and thereupon such property shall stand released.]
(2) Before making an order imposing a fine under sub-section (1), the person affected shall be given a reasonable opportunity of being heard.
(3) Where the person affected pays the fine due under sub-section (1), within such time as may be allowed in that behalf, the competent authority may, by order, revoke the declaration of forfeiture under section 68-I and thereupon such property shall stand released.]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
Section 68L Procedure in relation to certain trust properties. 1 docs
1[68L. Procedure in relation to certain trust properties.-- In the case of any person referred to in sub-clause (vi) of clause (b) of section 68B, if the competent authority, on the basis of the information and materials available to it, has reason to believe (the reasons for such belief to be recorded in writing) that any property held in trust is illegally acquired property, it may serve a notice upon the author of the trust or, as the case may be, the contributor of the assets out of or by means of which such propery was acquired by the trust and the trustees, calling upon them within a period of thirty days specified in the notice, to explain the source of money or other assets out of or by means of which such property was acquired or, as the case may be, the source of money or other assets which were contributed to the trust for acquiring such property and thereupon such notice shall be deemed to be a notice served under section 68H and all the other provisions of this Chapter shall apply accordingly.
Explanation.-- For the purposes of this section "illegally acquired property", in relation to any property held in trust, includes--
(i) any property which if it had continued to be held by the author of the trust or the contributor of such property to the trust would have been illegally acquired property in relation to such author or contributor;
(ii) any property acquired by the trust out of any contributions made by any person which would have been illegally acquired property in relation to such person had such person acquired such property out of such contributions.]
Explanation.-- For the purposes of this section "illegally acquired property", in relation to any property held in trust, includes--
(i) any property which if it had continued to be held by the author of the trust or the contributor of such property to the trust would have been illegally acquired property in relation to such author or contributor;
(ii) any property acquired by the trust out of any contributions made by any person which would have been illegally acquired property in relation to such person had such person acquired such property out of such contributions.]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)
Section 68M Certain transfers to be null and void
1[68M. Certain transfers to be null and void.-- Where after the making of an order under sub-section (1) of section 68F or the issue of a notice under section 68H or under section 68L, any property referred to in the said order or notice is transferred by any mode whatsoever such transfer shall, for the purposes of the proceedings under this Chapter, be ignored and if such property is subsequently forfeited to the Central Government under section 68-I, then, the transfer of such property shall be deemed to be null and void.]
1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)