The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976

(1) This Act may be called the Smugglers and ForeignExchange Manipulators (Forfeiture of Property) Act, 1976. (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) It shall be deemed to have come into force on the 5th day of November, 1975.

(1) The provisions of this Act shall apply only to the persons specified insub-section (2). (2) The persons referred to in sub-section (1) are the following, namely:-- (a) every person-- (i) who has been convicted under the Sea Customs Act, 1878 (8 of 1878), or the CustomsAct, 1962 (52 of 1962), of an offence in relation to goods of a value exceeding one lakh ofrupees; or (ii) who has been convicted under the Foreign Exchange Regulation Act, 1947 (7 of 1947), orthe Foreign Exchange Regulation Act, 1973 (46 of 1973), of an offence, the amount or valueinvolved in which exceeds one lakh of rupees; or (iii) who having been convicted under the Sea Customs Act, 1878 (8 of 1878), or theCustoms Act, 1962 (52 of 1962), has been convicted subsequently under either of those Acts; or (iv) who having been convicted under the Foreign Exchange RegulationAct, 1947 (7 of 1947), or the Foreign Exchange Regulation Act, 1973 (46 of 1973), has beenconvicted subsequently under either of those Acts; (b) every person in respect of whom an order of detention has been made under the Conservationof Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974): Provided that-- (i) such order of detention, being an order to which the provisions of section 9 or section 12Aof the said Act do not apply, has not been revoked on the report of the Advisory Board undersection 8 of the said Act or before the receipt of the report of the Advisory Board or beforemaking a reference to the Advisory Board; or (ii) such order of detention, being an order to which the provisions of section 9 of the said Actapply, has not been revoked before the expiry of the time for, or on the basis of, the review under sub-section (3) of section 9, or on the report of the Advisory Board under section 8, read withsub-section (2) of section 9, of the said Act; or (iii) such order of detention, being an order to which the provision of section 12A of the saidAct apply, has not been revoked before the expiry of the time for, or on the basis of, the firstreview under sub-section (3) of that section, or on the basis of the report of the Advisory Boardunder section 8, read with sub-section (6) of section 12A, of that Act; or (iv) such order of detention has not been set aside by a court of competent jurisdiction; (c) every person who is a relative of a person referred to in clause (a) or clause (b); (d) every associate of a person referred to in clause (a) or clause (b); (e) any holder (hereafter in this clause referred to as the present holder) of any property whichwas at any time previously held by a person referred to in clause (a) or clause (b) unless the presentholder or, as the case may be, any one who held such property after such person and before thepresent holder, is or was a transferee in good faith for adequate consideration. Explanation 1.--For the purposes of sub-clause (i) of clause (a), the value of any goods in relation towhich a person has been convicted of an offence shall be the wholesale price of the goods in the ordinarycourse of trade in India as on the date of the commission of the offence. Explanation 2.--For the purposes of clause (c), "relative", in relation to a person, means-- (i) spouse of the person; (ii) brother or sister of the person; (iii) brother or sister of the spouse of the person; (iv) any lineal ascendant or descendant of the person; (v) any lineal ascendant or descendant of the spouse of the person; (vi) spouse of a person referred to in clause (ii), clause (iii) clause (iv) or clause (v); (vii) any lineal descendant of a person referred to in clause (ii) or clause (iii). Explanation 3@/[email protected] the purposes of clause (d), "associate", in relation to a person, means-- (i) any individual who had been or is residing in the residential premises (including outhouses) ofsuch person; (ii) any individual who had been or is managing the affairs or keeping the accounts of suchperson; (iii) any association of persons, body of individuals, partnership firm, or private company withinthe 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 clause (iii) at any time whensuch person had been or is a member, partner or director of such association, body, partnership firmor private company; (v) any person who had been or is managing the affairs, or keeping the accounts, of an associationof persons, body of individuals, partnership firm or private company referred to in clause (iii); (vi) the trustee of any trust, where,-- (a) the trust has been created by such person; or (b) the value of the assets contributed by such person (including the value of the assets, ifany, contributed by him earlier) to the trust amounts, on the date on which the contribution ismade, 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 anyproperties of such person are held on his behalf by any other person, such other person. Explanation 4.-- For the avoidance of doubt, it is hereby provided that the question whether anyperson is a person to whom the provisions of this Act apply may be determined with reference to anyfacts, circumstances or events (including any conviction or detention) which occurred or took placebefore the commencement of this Act. 1* * * * *

1On and from the commencement of the provisions ofChapter VA of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985), the provisions ofthis Act shall not apply to persons in relation to whom any order, or proceeding, may be made or takenunder that Chapter.

(1) In this Act, unless the context otherwise requires, (a) "Appellate Tribunal" means the Appellate 1*** Tribunal for Forfeited Property constituted undersection 12; (b) "competent authority" means an officer of the Central Government authorised by it undersub-section (1) of section 5 to perform the functions of a competent authority under this Act; (c) "illegally acquired property", in relation to any person to whom this Act applies, means-- (i) any property acquired by such person, whether before or after the commencement of thisAct, wholly or partly out of or by means of any income, earnings or assets derived or obtainedfrom or attributable to any activity prohibited by or under any law for the time being in forcerelating to any matter in respect of which Parliament has power to make laws; or (ii) any property acquired by such person, whether before or after the commencement of thisAct, wholly or partly out of or by means of any income, earning or assets in respect of which anysuch law has been contravened; or (iii) any property acquired by such person, whether before or after the commencement of thisAct, wholly or partly out of or by means of any income, earnings or assets the source of whichcannot be proved and which cannot be shown to be attributable to any act or thing done in respectof any matter in relation to which Parliament has no power to make laws; or (iv) any property acquired by such person, whether before or after the commencement of thisAct, for a consideration, or by any means, wholly or partly traceable to any property referred to insub-clauses (i) to (iii) or the income or earnings from such property; and includes-- (A) any property held by such person which would have been, in relation to any previousholder thereof, illegally acquired property under this clause if such previous holder had notceased to hold it, unless such person or any other person who held the property at any time aftersuch previous holder or, where there are two or more such previous holders, the last of suchprevious 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 thisAct, for a consideration, or by any means, wholly or partly traceable to any property falling underitem (A), or the income or earnings therefrom; (d) "prescribed" means prescribed by rules made under this Act; (e) "property" includes any interest in property, movable or immovable; (f) "trust" includes any other legal obligation. (2) Any reference in this Act to any law which is not in force in any area shall, in relation to that area,be construed as a reference to the corresponding law, if any, in force in that area. (3) Any reference in this Act to any officer or authority shall, in relation to any area in which there isno officer or authority with the same designation, be construed as a reference to such officer or authorityas may be specified by the Central Government by notification in the Official Gazette.

(1) As from the commencement of thisAct, it shall not be lawful for any person to whom this Act applies to hold any illegally acquired propertyeither by himself or through any other person on his behalf. (2) Where any person holds any illegally acquired property in contravention of the provisions ofsub-section (1), such property shall be liable to be forfeited to the Central Government in accordance withthe provisions of this Act.