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ApniLaw > Blog > Acts > Property Seizure in Drug Cases: How NDPS Act Section 68A to 68Z Work
Acts

Property Seizure in Drug Cases: How NDPS Act Section 68A to 68Z Work

Amna Kabeer
Last updated: June 6, 2025 8:35 pm
Amna Kabeer
1 month ago
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Narcotics & Drugs
Narcotics & Drugs
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This article is written by Atishay Jain, a former UPSC aspirant and a core member of the ApniLaw team. With a strong focus on criminal and regulatory law, the article offers clear insights into complex legislations like the Narcotic Drugs and Psychotropic Substances (NDPS) Act. For any personal queries or suggestions, feel free to reach out to us through our official channel.

Contents
IntroductionSection 68A: DefinitionsSection 68B: Application of the ChapterSection 68C: Prohibition of Holding Illegally Acquired PropertySection 68D: Competent AuthoritySection 68E: Identifying Illegally Acquired PropertySection 68F: Seizure or Freezing of Illegally Acquired PropertySection 68G: Management of Seized or Forfeited PropertiesSection 68H: Notice of ForfeitureSection 68I: Forfeiture of Property in Certain CasesSection 68J: Burden of ProofSection 68K: Fine in Lieu of ForfeitureSection 68L: Procedure in Relation to Certain Trust PropertiesSection 68M: Certain Transfers to be Null and VoidSection 68N: AppealsSection 68O: Appellate TribunalSection 68P: Notice or Order Not to be Invalid for Error in DescriptionSection 68Q: Bar of JurisdictionSection 68R: Powers of Competent Authority and Appellate TribunalSection 68S: Information to Competent AuthoritySection 68T: Certain Officers to AssistCompetent Authority and Appellate TribunalSection 68U: Power to Take PossessionSection 68V: Rectification of MistakesSection 68W: Findings Under Other Laws Not ConclusiveSection 68X: Service of Notices and OrdersSection 68Y: Punishment for Acquiring Property in Relation to Which Proceedings Have Been TakenSection 68Z: Power to Make RulesRecent Supreme Court JudgmentConclusion

Introduction

The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act), forms the core of India’s anti-drug laws. It targets drug trafficking and related crimes. Sections 68A to 68Z deal with property forfeiture linked to drug offenses. These provisions empower authorities to trace, seize, and forfeit assets gained through illegal drug activities. The goal is to break the financial support of drug trafficking networks.
This article provides a comprehensive overview of Sections 68A to 68Z, elucidating their scope, procedures, and the rights of individuals involved. Additionally, we discuss a recent Supreme Court judgment that underscores the importance of due process in property seizure cases under the NDPS Act.

Section 68A: Definitions

Section 68A lays the groundwork by defining key terms such as “illegally acquired property,” “relative,” “associate,” and “competent authority.” Understanding these definitions is crucial, as they determine the applicability of the forfeiture provisions to individuals and their connections.

Section 68B: Application of the Chapter

This section specifies the categories of persons to whom the forfeiture provisions apply, including those convicted under the NDPS Act and their relatives and associates. It ensures that individuals cannot shield illicit assets by transferring them to close connections.

Section 68C: Prohibition of Holding Illegally Acquired Property

This Section prohibits individuals covered by this chapter from holding illegally acquired property, and the Central Government can forfeit such property.

Section 68D: Competent Authority

The Central Government appoints a “competent authority” responsible for initiating and overseeing the forfeiture process. This authority plays a pivotal role in ensuring that the provisions are implemented effectively.

Section 68E: Identifying Illegally Acquired Property

This section empowers the competent authority to conduct inquiries and investigations to trace properties believed to be illegally acquired. It allows for the examination of financial records, property documents, and other relevant materials.

Section 68F: Seizure or Freezing of Illegally Acquired Property

To prevent the disposal or transfer of suspected properties, Section 68F permits the competent authority to order their seizure or freezing during the investigation. This ensures that the assets remain intact pending the outcome of the forfeiture proceedings.

Section 68G: Management of Seized or Forfeited Properties

Once properties are seized or forfeited, their management becomes essential. This section provides for the appointment of administrators to manage such properties until their final disposal.

Section 68H: Notice of Forfeiture

Before any property is forfeited, the competent authority must serve a notice to the person affected, giving them an opportunity to explain the source of the property and why it should not be forfeited. This ensures adherence to the principles of natural justice.

Section 68I: Forfeiture of Property in Certain Cases

If the competent authority finds the property illegally acquired after reviewing the individual’s response to the notice, it can declare the property forfeited to the Central Government.

Section 68J: Burden of Proof

In forfeiture proceedings, the burden of proving that the property is not illegally acquired lies with the person affected. This reversal of the usual burden of proof underscores the seriousness with which the law treats drug-related offenses.

Section 68K: Fine in Lieu of Forfeiture

If only a part of the property is proven to be illegally acquired, or if the property cannot be forfeited for any reason, the competent authority may impose a fine equivalent to the market value of the property.

Section 68L: Procedure in Relation to Certain Trust Properties

This section addresses properties held in trust, ensuring that the provisions of forfeiture apply even when assets are placed under trust arrangements to evade the law.

Section 68M: Certain Transfers to be Null and Void

Any transfer of property after the issuance of a notice under Section 68H is considered null and void if the property is subsequently forfeited. This prevents individuals from circumventing the law by transferring assets during proceedings.

Section 68N: Appeals

Individuals aggrieved by the orders of the competent authority have the right to appeal to the Appellate Tribunal within a specified period. This provision ensures a mechanism for review and redressal.

Section 68O: Appellate Tribunal

The Appellate Tribunal, constituted under this section, hears appeals against the orders of the competent authority. It provides an independent forum for adjudication.

Section 68P: Notice or Order Not to be Invalid for Error in Description

This section ensures that minor errors in the description of property or persons in notices or orders do not render them invalid, provided the identity is clear.

Section 68Q: Bar of Jurisdiction

Civil courts cannot entertain any suit or proceeding regarding matters that the Appellate Tribunal or competent authority is empowered to decide under this chapter.

Section 68R: Powers of Competent Authority and Appellate Tribunal

Both the competent authority and the Appellate Tribunal have powers akin to those of a civil court, including summoning witnesses, requiring document production, and receiving evidence on affidavits.

Section 68S: Information to Competent Authority

The competent authority can request information from government officers and others, who must provide it to support effective investigation and enforcement.

Section 68T: Certain Officers to Assist
Competent Authority and Appellate Tribunal

Officers from customs, excise, income tax, and police must assist in enforcing the forfeiture provisions.

Section 68U: Power to Take Possession

Once the property is forfeited, the competent authority can take possession of it and use necessary force if needed to enforce the forfeiture order.

Section 68V: Rectification of Mistakes

The competent authority or Appellate Tribunal may rectify any mistake apparent from the record within a specified time frame, ensuring accuracy in proceedings.

Section 68W: Findings Under Other Laws Not Conclusive

Findings or orders under other laws are not conclusive for proceedings under this chapter. Thus, allowing independent assessment under the NDPS Act.

Section 68X: Service of Notices and Orders

This section outlines the methods for serving notices and orders, ensuring that affected individuals are duly informed.

Section 68Y: Punishment for Acquiring Property in Relation to Which Proceedings Have Been Taken

Acquiring property with the knowledge that proceedings are pending under this chapter is punishable, deterring individuals from engaging in such transactions.

Section 68Z: Power to Make Rules

The Central Government can make rules to carry out the provisions of this chapter and address emerging challenges effectively.

Recent Supreme Court Judgment

In the landmark case of Pukhraj v. State of Rajasthan, the Supreme Court emphasized the necessity of adhering to due process in property confiscation under the NDPS Act. The Court set aside a trial court’s order. This had directed the confiscation and auction of a vehicle. Without providing the registered owner an opportunity to be heard. The Supreme Court held this, under Section 63 of the NDPS Act. It is imperative to afford the owner a chance to present their case before finalizing confiscation orders.

Conclusion

Sections 68A to 68Z of the NDPS Act serve as powerful tools in the fight against drug trafficking by targeting the financial assets derived from such illegal activities. However, the enforcement of these provisions must be balanced with the principles of natural justice and due process. The recent Supreme Court judgment reinforces the importance of providing individuals with a fair opportunity. This is to contest forfeiture proceedings. India continues its efforts to combat narcotics offenses. It remains crucial to ensure that the rights of individuals are protected within the ambit of the law.

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TAGGED:Asset Seizuredrug financingdrug recoveryDrug traffickingdrug trafficking at propertyNarcotic Drugs and Psychotropic SubstancesProperty Seizuresearch and seizureSection 68Seizure of Property
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