Notice of forfeiture of property
AI Assist
Summary
When a court, after an inquiry, investigation or survey under section 105D, believes a property may be proceeds of crime, it can serve a notice on the person affected. The notice gives 30 days to state the source of income or assets used to acquire the property, produce supporting evidence and provide other particulars. If the property is held by someone else on the person’s behalf, that other person also gets a copy of the notice.
Example
Priya runs a small shop and an inquiry finds expensive goods that look unexplained. The court serves Priya a notice asking her to, within 30 days, show the source of income used to buy the goods and produce supporting evidence or show cause why they should not be declared proceeds of crime and forfeited to the Central Government. If Karan is holding the goods on Priya’s behalf, Karan also receives a copy of the notice.
Bare Act
Enacted text(1) If as a result of the inquiry, investigation or survey under section 105D, 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, earning 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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