Fine in lieu of forfeiture
AI Assist
Summary
Where the Court declares property forfeited to the Central Government but only part of the property lacks proof of source, the person affected may be allowed to pay a fine equal to the market value of that part instead of forfeiture. The person must be given a reasonable opportunity to be heard before the fine is imposed. If the fine is paid within the time allowed, the Court may revoke the forfeiture and release the property.
Example
Priya owns goods seized in an investigation. The Court finds most goods forfeited to the Central Government but cannot prove the source of one batch, so it offers Priya the option to pay a fine equal to that batch’s market value instead of forfeiture. If Priya pays within the time allowed, the Court can revoke the forfeiture and release those goods.
Bare Act
Enacted text(1) Where the Court makes a declaration that any property stands forfeited to the Central Government under section 120 and it is a case where the source of only a part of such property has not been proved to the satisfaction of the Court, it shall make an order giving an option to the person affected to pay, in lieu of forfeiture, a fine equal to the market value of such part.
(2) Before making an order imposing a fine under sub-section (1), the person affected shall be given a reasonable opportunity of being heard.
(3) Where the person affected pays the fine due under sub-section (1), within such time as may be allowed in that behalf, the Court may, by order, revoke the declaration of forfeiture under section 120 and thereupon such property shall stand released.
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