Empowers courts to trace and identify property derived from criminal activity.
Strengthens mechanisms for recovery and attachment of proceeds of crime.
Introduction
Section 116 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) provides the legal framework for identification of property believed to have been unlawfully acquired in connection with criminal offences. The provision enables courts to determine whether property represents proceeds of crime and facilitates subsequent attachment, seizure, or forfeiture through domestic or international legal assistance mechanisms.
It plays a crucial role in combating economic offences and preventing concealment of illicit assets.
Objective of the Provision
The objectives of Section 116 BNSS are
- to enable identification of property derived from criminal activity
- to support attachment and forfeiture proceedings
- to prevent concealment or transfer of illicit assets
- to facilitate recovery of proceeds of crime across jurisdictions
The provision strengthens evidentiary and procedural control over unlawful property.
Meaning / Concept
Unlawfully Acquired Property
Unlawfully acquired property refers to property obtained directly or indirectly through commission of an offence. It includes
- money derived from criminal activity
- movable or immovable assets purchased from illegal gains
- substituted or converted property representing proceeds of crime
Such property becomes subject to attachment or forfeiture under law.
Identification Process
Identification involves tracing property to establish its connection with criminal conduct. This may include
- financial investigation
- documentary verification
- tracing ownership patterns
- examination of transaction history
Thus, the provision supports evidentiary determination of illicit assets.
Detailed Explanation of the Section
Section 116 BNSS provides that
- where a criminal court has reason to believe that property is unlawfully acquired
- it may initiate steps for identification of such property
- identification may relate to property located within or outside India
- the process may involve investigation through competent authorities
Once identified
- the property may become subject to attachment or forfeiture proceedings
- appropriate orders may be issued under relevant provisions of the Sanhita
Key features include
- applicability to proceeds of crime
- authority of court to initiate identification process
- coverage of domestic and foreign property
- linkage with attachment and forfeiture mechanisms
These safeguards ensure effective tracing of illicit assets.
Procedure or Legal Framework
The procedural framework under Section 116 BNSS generally includes
- formation of belief regarding unlawful acquisition of property
- identification of suspected assets through investigation
- verification of ownership and transaction records
- tracing linkage between property and offence
- initiation of attachment or forfeiture proceedings where appropriate
The process may involve cooperation with foreign authorities under reciprocal arrangements.
Judicial Interpretation
Courts have consistently emphasized the importance of tracing and identifying proceeds of crime to ensure effective enforcement of criminal law.
In Ram Jethmalani v. Union of India (2011) 8 SCC 1, the Supreme Court highlighted the necessity of identifying assets derived from unlawful activity located within and outside India.
In State (CBI) v. Nalini (1999) 5 SCC 253, the Court recognized the role of international cooperation in tracing property connected with criminal offences.
In CBI v. V.C. Shukla 1998 Supp (3) SCC 410, the Supreme Court acknowledged the evidentiary significance of identifying property linked with criminal conduct.
These decisions reinforce the procedural significance of property identification under Section 116 BNSS.
Importance of the Provision
Section 116 BNSS is important because
- it enables tracing of proceeds of crime
- it supports attachment and forfeiture proceedings
- it prevents concealment of illicit assets
- it strengthens enforcement against economic offences
The provision plays a central role in asset recovery mechanisms within criminal procedure.
Connection with Other Sections
Section 116 BNSS operates alongside related provisions governing property tracing and recovery
- Section 111 BNSS – Definitions
- Section 115 BNSS – Assistance in relation to orders of attachment or forfeiture of property
- Section 117 BNSS – Seizure or attachment of identified property
- Section 106 BNSS – Power of police officer to seize certain property
Corresponding Provision under Old Law
Section 116 BNSS corresponds to Section 105D of the Code of Criminal Procedure, 1973.
Illustrative Example
During investigation of a corruption case, authorities discover that the accused purchased multiple immovable properties using funds obtained through illegal transactions. The court initiates proceedings to identify these assets as unlawfully acquired property and prepares for attachment proceedings. This action is valid under Section 116 BNSS.
Conclusion
Section 116 of the Bharatiya Nagarik Suraksha Sanhita, 2023 provides a structured mechanism for identifying property derived from criminal activity. By enabling tracing of proceeds of crime and facilitating subsequent attachment or forfeiture proceedings, the provision strengthens enforcement of criminal justice in cases involving illicit assets.
