Bharatiya Nagarik Suraksha Sanhita, 2023
Section 504
Procedure where no claimant appears within six months
(1) If no person within such period establishes his claim to such property, and if the person in whose possession such property was found is unable to show that it was legally acquired by him, the Magistrate may by order direct that such property shall be at the disposal of the State Government and may be sold by that Government and the proceeds of such sale shall be dealt with in such manner as the State Government may, by rules, provide.
(2) An appeal shall lie against any such order to the Court to which appeals ordinarily lie from convictions by the Magistrate.
Why this exists
Property that stays unclaimed and cannot be traced to a legitimate owner shouldn't simply gather dust in a police storeroom indefinitely. This section gives a clear endpoint: after a fair waiting period and if the holder can't prove legal ownership, the state can convert the property into money for public use, while still allowing an appeal against that decision. It corresponds to section 458 of the earlier CrPC.