BNSS Section 120 — Forfeiture of property in certain cases

CHAPTER VIII RECIPROCAL ARRANGEMENTS FOR ASSISTANCE IN CERTAIN MATTERS AND PROCEDURE FOR ATTACHMENT AND FORFEITURE OF PROPERTY

Criminal

Summary

After reviewing the person's response to the notice and giving them (and anyone else who holds the property on their behalf) a fair chance to be heard, the court will decide whether the property in question is the result of a crime. If the person does not appear or present their case within thirty days of the notice, the court can make this decision based only on the evidence available. If the court is sure that some of the property is crime proceeds but cannot identify exactly which items, it can specify which properties it believes are crime proceeds. When the court finds that property is crime proceeds, that property is forfeited to the Central Government, free from any debts or claims against it. If the forfeited property includes company shares, the company must immediately register the Central Government as the new owner of those shares.

Official Text

(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 (18 of 2013) or the Articles of Association of the company, forthwith register the Central Government as the transferee of such shares.

Related Judgments

  • SC (2025) Vol.5 p.730 — Supreme Court of India (2025)
  • SC (2025) Vol.6 p.545 — Supreme Court of India (2025)
  • SC (2024) Vol.7 p.979 — Supreme Court of India (2024)
  • .. Petitioner/Accused No.12 vs The State of Tamilnadu, — Madras High Court ()
  • SC (2025) Vol.11 p.291 — Supreme Court of India (2025)
  • SC (2025) Vol.2 p.1588 — Supreme Court of India (2025)
  • SC (2025) Vol.1 p.1469 — Supreme Court of India (2025)
  • SC (2025) Vol.3 p.1309 — Supreme Court of India (2025)

Old <-> New Code Mapping

  • CrPC §105H — Forfeiture of property in certain cases