Code:
(1) The Court may, after considering the explanation, if any, to the show-cause notice issued under section 105G 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, 1956 (1 of 1956) or the articles of association of the company, forthwith register the Central Government as the transferee of such shares.
Explanation:
This section deals with the forfeiture of property in certain cases. It allows the court to order the forfeiture of property that was used or intended to be used in the commission of certain offenses. This section is applicable to offenses related to:
- Terrorist activities
- Illicit trafficking in narcotic drugs and psychotropic substances
- Organized crime
The court can order forfeiture of property even if the accused is acquitted or the case is withdrawn, if it is satisfied that the property was used or intended to be used in the commission of the offense.
Illustration:
Suppose a person is charged with the offense of trafficking in narcotics. The prosecution proves that the accused used a particular car to transport the narcotics. Even if the accused is acquitted of the charges, the court can order the forfeiture of the car under Section 105H CrPC as it was used in the commission of the offense.
Common Questions and Answers:
Q1: What are the grounds for forfeiture of property under Section 105H CrPC?
A1:
The property can be forfeited if it is proven that:
- It was used or intended to be used in the commission of the offense.
- It was acquired from the proceeds of the offense.
Q2: What are the procedures for forfeiture of property under Section 105H CrPC?
A2:
The court can order forfeiture of property after providing a reasonable opportunity to the owner of the property to be heard. The procedure for forfeiture of property is as follows:
- The prosecution must file an application for forfeiture of property.
- The court will issue a notice to the owner of the property to show cause why the property should not be forfeited.
- The owner of the property can contest the application for forfeiture.
- If the court is satisfied that the property should be forfeited, it will pass an order for forfeiture.
