Fine in lieu of forfeiture
AI Assist
Summary
If a court declares property forfeited to the Central Government but only part of its source is unproved, the affected person may be offered the option 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 imposing the fine. If the fine is paid in time, the court may revoke the forfeiture and release the property.
Example
Priya owns a house partly bought with unexplained cash. The court declares the house forfeited but finds only the cash portion unproved, so it offers Priya the option to pay a fine equal to that portion's market value instead of forfeiture. Priya pays the fine within the time allowed and the court revokes the forfeiture and releases the house.
Bare Act
Enacted text(1) Where the Court makes a declaration that any property stands forfeited to the Central Government under section 105H 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 105H and thereupon such property shall stand released
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