Section 105G CrPC - Notice of Forfeiture of Property

Section 105G of the Code of Criminal Procedure, 1973 formed part of Chapter VIIA, which dealt with reciprocal arrangements for assistance in certain matters and procedures relating to attachment and forfeiture of property. This page explains the provision as it operated under the CrPC before the Bharatiya Nagarik Suraksha Sanhita, 2023 came into force.

Legal position: The Bharatiya Nagarik Suraksha Sanhita, 2023 came into force on 1 July 2024. This article preserves and explains Section 105G CrPC in its pre-BNSS setting. Questions concerning proceedings begun before commencement should also be considered with the applicable repeal and savings provisions.

What Section 105G CrPC provided

Section 105G - Notice of forfeiture of property

(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 the properties are proceeds of crime, it may serve notice on the affected person. The notice calls upon that person, within thirty days specified in the notice, to state the source of income, earnings or assets from which the property was acquired, identify the evidence relied upon, provide other relevant information and particulars, and show cause why the property should not be declared proceeds of crime and forfeited to the Central Government.

(2) If the notice specifies property held by another person on behalf of the affected person, a copy of the notice must also be served on that other person.

Meaning and scope of Section 105G

Section 105G was a show-cause provision. It did not, by itself, complete forfeiture. It required the Court first to have reason to believe, on the basis of an inquiry, investigation or survey under Section 105D CrPC, that the relevant property constituted proceeds of crime. The affected person then received an opportunity to explain the lawful source of acquisition and place supporting evidence before the Court.

Important requirements of a notice under Section 105G

Foundation under Section 105D: the notice followed tracing and identification of property through an inquiry, investigation or survey contemplated by Section 105D.
Reason to believe: the Court was required to form the prescribed belief that all or any of the property represented proceeds of crime.
Thirty-day response period: the affected person was called upon to respond within thirty days specified in the notice.
Disclosure of source: the person could identify the income, earnings or assets through which the property had been acquired and produce supporting evidence.
Show-cause opportunity: the person could explain why the property should not be treated as proceeds of crime and forfeited to the Central Government.
Property held through another person: where property was stated to be held by another person on behalf of the affected person, that other person was also entitled to a copy of the notice.

Connection with Sections 105D and 105H CrPC

The statutory sequence is important. Section 105D concerned tracing and identifying unlawfully acquired property. Section 105G provided the notice and opportunity to explain the source of the property. Thereafter, Section 105H governed the Court's consideration of the explanation and material, the opportunity of hearing, and the finding whether the property was proceeds of crime.

What did "proceeds of crime" mean in this context?

For Chapter VIIA, the relevant statutory definitions were contained in Section 105A CrPC. Section 105G should therefore be read as part of the integrated scheme of Sections 105A to 105L rather than as an isolated power of forfeiture.

Procedure after notice

A notice under Section 105G initiated the opportunity to show cause. The subsequent forfeiture determination was dealt with under Section 105H, which required consideration of the explanation and available material and contemplated a reasonable opportunity of being heard. Thus, service of notice under Section 105G was a procedural stage preceding the Court's forfeiture finding.

CrPC and the commencement of BNSS

The Central Government appointed 1 July 2024 as the date on which the Bharatiya Nagarik Suraksha Sanhita, 2023 came into force, subject to the exception stated in the commencement notification. Accordingly, Section 105G CrPC is primarily relevant to the pre-BNSS legal framework and to matters in which the applicable savings provisions preserve the earlier procedure.

Disclaimer: This article is a general explanation of the statutory provision and is not a substitute for advice on the facts of a particular case.