Answer By law4u team
Bharatiya Nagarik Suraksha Sanhita, 2023 - Section 120: Forfeiture of Property in Certain Cases
(1) The Court may, after considering the explanation, if any, to the show-cause notice issued under section 119 and the material 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 proceeds of crime:
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 Court or represent his case before it within a period of thirty days specified in the show-cause notice, the Court may proceed to record a finding under this sub-section ex parte on the basis of evidence available before it.
(2) Where the Court is satisfied that some of the properties referred to in the show-cause notice are proceeds of crime but it is not possible to identify specifically such properties, then, it shall be lawful for the Court to specify the properties which, to the best of its judgment, are proceeds of crime and record a finding accordingly under sub-section (1).
(3) Where the Court records a finding under this section to the effect that any property is proceeds of crime, such property shall stand forfeited to the Central Government free from all encumbrances.
(4) Where any shares in a company stand forfeited to the Central Government under this section, then, the company shall, notwithstanding anything contained in the Companies Act, 2013, forthwith register the Central Government as the transferee of such shares.
Brefe Detail
Section 120 of the Bharatiya Nagarik Suraksha Sanhita, 2023, outlines the process for the forfeiture of properties deemed to be proceeds of crime. It establishes the Court's authority to consider evidence and provide affected individuals the opportunity to respond. The section specifies procedures for determining whether properties are proceeds of crime and the implications of such a finding, including the forfeiture of shares in a company.
Question & Answers
Q1: What does Section 120 allow the Court to do?
A1: Section 120 allows the Court to determine whether properties are proceeds of crime after considering evidence and giving affected parties the opportunity to be heard.
Q2: What happens if the affected person does not appear in Court?
A2: If the affected person does not appear within thirty days, the Court may proceed to make a finding based on the available evidence ex parte.
Q3: How does the Court handle properties that cannot be specifically identified as proceeds of crime?
A3: The Court can specify properties that, to the best of its judgment, are deemed proceeds of crime even if they cannot be specifically identified.
Q4: What occurs when a property is declared proceeds of crime?
A4: The property is forfeited to the Central Government free from all encumbrances.
Q5: What must a company do if shares are forfeited to the Central Government?
A5: The company must register the Central Government as the transferee of such shares, despite any provisions in the Companies Act, 2013.
Example
- Example 1: If an individual is accused of having acquired luxury properties through illegal activities, the Court will evaluate evidence and provide them an opportunity to explain their source of income.
- Example 2: In cases where a person holds assets through another, the Court must notify both parties and consider their responses.
- Example 3: If the Court finds certain assets are proceeds of crime but cannot pinpoint which ones, it may identify a group of assets as potentially tainted and forfeit them.
Summary
Section 120 of the Bharatiya Nagarik Suraksha Sanhita, 2023, details the forfeiture process for properties identified as proceeds of crime. It emphasizes the importance of due process by allowing affected individuals to present their cases, while also granting the Court the authority to make determinations based on evidence. This section ensures that once a property is deemed forfeited, it is transferred to the Central Government without encumbrances.
