Notice of forfeiture of property
AI Assist
Summary
If an inquiry or survey suggests some property may be proceeds of crime, the Court can serve a notice on the person affected requiring them, within 30 days, to state the income or assets used to acquire it and the evidence relied on. The person must show cause why the property should not be declared proceeds of crime and forfeited to the Central Government. If someone else holds the property for that person, a copy of the notice is sent to that holder.
Example
Priya owns a flat which, after a survey, the Court suspects was bought with illegal earnings. The Court serves her a 30-day notice asking her to state the source of income and produce evidence. If she cannot show cause, the flat may be declared proceeds of crime and forfeited to the Central Government.
Bare Act
Enacted text(1) If as a result of the inquiry, investigation or survey under section 116, the Court has reason to believe that all or any of such properties are proceeds of crime, it may serve a notice upon such person (hereinafter referred to as the person affected) calling upon him within a period of thirty days specified in the notice to indicate the source of income, earnings or assets, out of which or by means of which he has acquired such property, the evidence on which he relies and other relevant information and particulars, and to show cause why all or any of such properties, as the case may be, should not be declared to be proceeds of crime and forfeited to the Central Government.
(2) Where a notice under sub-section (1) to any person specifies any property as being held on behalf of such person by any other person, a copy of the notice shall also be served upon such other person.
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