Bharatiya Nagarik Suraksha Sanhita, 2023
Section 119
Notice of forfeiture of property
(1) If as a result of the inquiry, investigation or survey under section 116, the Court has reason to believe that all or any of such properties are proceeds of crime, 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 source of 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 proceeds of crime and forfeited to the Central Government.
(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.
Why this exists
Forfeiture provisions like this trace back to earlier Indian laws dealing with ill-gotten wealth from crime, smuggling, and economic offences (such as the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act and provisions in the old Code of Criminal Procedure). The idea is that crime often leaves a trail of property or money, and the state should be able to take back assets built from criminal activity. But taking someone's property is a serious step, so the law builds in a safeguard: before any forfeiture, the person must be told exactly what is suspected and given a real chance to explain and defend themselves. This reflects the constitutional principle of natural justice—no deprivation of property without a fair hearing.
Common misconceptions
- Myth: The court can seize suspected 'crime money' or property immediately without warning.
Fact: The law requires the court to first issue a written notice and give the person 30 days to explain and present evidence before any forfeiture decision is made. - Myth: Only the main suspect needs to be informed about the forfeiture proceedings.
Fact: If the suspected property is held by someone else on the suspect's behalf, that other person must also receive a copy of the notice.