Bharatiya Nagarik Suraksha Sanhita, 2023
Section 121
Fine in lieu of forfeiture
(1) Where the Court makes a declaration that any property stands forfeited to the Central Government under section 120 and it is a case where the source of only a part of such property has not been proved to the satisfaction of the Court, 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 Court may, by order, revoke the declaration of forfeiture under section 120 and thereupon such property shall stand released.
Why this exists
This provision is part of India's framework for forfeiting illegally acquired property (often linked to smuggling, organized crime, or disproportionate assets cases). Courts recognized that sometimes only a portion of a person's property has an unclear source, while the rest is legitimately owned. Total forfeiture in such mixed cases could be disproportionate and unfair. So the law allows a proportionate remedy—paying a fine equal to the unexplained part's value—so the person can keep their property rather than lose all of it for a partial irregularity.
Common misconceptions
- Myth: If any part of a property's source is unclear, the whole property will always be seized.
Fact: Section 121 allows the court to charge a fine only for the unexplained part, letting the owner keep the property if they pay that fine. - Myth: The fine can be imposed without asking the owner anything.
Fact: Sub-section (2) requires the court to give the affected person a reasonable opportunity to be heard before imposing the fine.