Empowers competent authority to declare unlawfully acquired property forfeited after due inquiry.
Strengthens legal framework for confiscation of proceeds of crime following procedural safeguards.
Introduction
Section 120 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) provides the procedure through which property identified as unlawfully acquired may be declared forfeited to the Government after consideration of the explanation furnished under Section 119 BNSS. The provision ensures that confiscation of illicit assets takes place only after due inquiry and compliance with statutory safeguards.
It forms a crucial stage in the process of recovery of proceeds of crime under the Sanhita.
Objective of the Provision
The objectives of Section 120 BNSS are
- to enable forfeiture of unlawfully acquired property after inquiry
- to prevent retention of property derived from criminal activity
- to strengthen enforcement against economic offences
- to ensure lawful confiscation through structured procedure
The provision ensures effective implementation of property forfeiture mechanisms.
Meaning / Concept
Forfeiture of Property
Forfeiture refers to permanent confiscation of property by the State where it is established that the property represents proceeds of crime or has been unlawfully acquired.
Such forfeiture follows identification, attachment, and notice procedures under earlier provisions.
Cases Covered Under the Provision
The section applies where
- property has been identified as unlawfully acquired under Section 116 BNSS
- notice has been issued under Section 119 BNSS
- the explanation provided is unsatisfactory or absent
Thus, forfeiture represents the final stage of confiscation proceedings.
Detailed Explanation of the Section
Section 120 BNSS provides that
- after considering the explanation submitted in response to notice under Section 119 BNSS
- if the competent authority is satisfied that the property is unlawfully acquired property
- it may declare that such property stands forfeited to the Government
The order may apply to
- the whole property
- part of the property
- or property equivalent in value where direct tracing is not possible
The authority must record reasons before passing forfeiture orders.
Key features include
- requirement of prior notice and opportunity of hearing
- determination of unlawful acquisition
- reasoned order by competent authority
- forfeiture to Government upon satisfaction
These safeguards ensure fairness in confiscation proceedings.
Procedure or Legal Framework
The procedural framework under Section 120 BNSS generally includes
- identification of unlawfully acquired property under Section 116 BNSS
- seizure or attachment under Section 117 BNSS
- issuance of notice under Section 119 BNSS
- submission of explanation by affected person
- evaluation of evidence by competent authority
- passing of forfeiture order where justified
This ensures compliance with principles of natural justice before confiscation.
Judicial Interpretation
Courts have emphasized that forfeiture of property must follow strict procedural safeguards and cannot be ordered arbitrarily.
In Attorney General for India v. Amratlal Prajivandas (1994) 5 SCC 54, the Supreme Court upheld statutory forfeiture of illegally acquired property where due process safeguards were followed.
In Bishambhar Dayal Chandra Mohan v. State of Uttar Pradesh (1982) 1 SCC 39, the Court emphasized protection of property rights through lawful procedure.
In Maneka Gandhi v. Union of India (1978) 1 SCC 248, the Supreme Court reiterated that deprivation of rights must follow fair, just, and reasonable procedure established by law.
These rulings reinforce the requirement of procedural fairness in forfeiture proceedings under Section 120 BNSS.
Importance of the Provision
Section 120 BNSS is important because
- it enables confiscation of proceeds of crime after due inquiry
- it prevents unlawful enrichment through criminal activity
- it strengthens enforcement against corruption and economic offences
- it ensures compliance with principles of natural justice before forfeiture
The provision plays a central role in criminal asset recovery mechanisms.
Connection with Other Sections
Section 120 BNSS operates alongside related provisions governing confiscation of unlawful property
- Section 116 BNSS – Identifying unlawfully acquired property
- Section 117 BNSS – Seizure or attachment of property
- Section 118 BNSS – Management of properties seized or forfeited
- Section 119 BNSS – Notice of forfeiture of property
- Section 121 BNSS – Fine in lieu of forfeiture
Corresponding Provision under Old Law
Section 120 BNSS corresponds to Section 105H of the Code of Criminal Procedure, 1973.
Illustrative Example
During investigation of a corruption case, authorities identify immovable property purchased using illegal funds. After issuing notice and considering the explanation submitted by the accused, the competent authority concludes that the property represents proceeds of crime and declares it forfeited to the Government. This action is valid under Section 120 BNSS.
Conclusion
Section 120 of the Bharatiya Nagarik Suraksha Sanhita, 2023 provides the statutory mechanism for forfeiture of unlawfully acquired property after due inquiry and consideration of explanations submitted by affected persons. By ensuring structured confiscation of illicit assets, the provision strengthens enforcement of criminal justice and asset recovery processes.
