Section 120 BNSS: Forfeiture of Property in Certain Cases

Meaning and scope of Section 120 BNSS

Section 120 follows the show-cause process under Section 119 BNSS. The Court must consider the explanation submitted by the affected person, examine the material before it and provide a reasonable opportunity of hearing before recording a finding on whether all or any of the property in question is proceeds of crime.

If the affected person, or another person through whom the property is held, does not appear or represent the case within the thirty-day period specified in the Section 119 notice, the Court may proceed ex parte on the available evidence.

Section 120 also permits the Court, where some property is shown to be proceeds of crime but the precise property cannot be specifically identified, to specify the property which, to the best of its judgment, constitutes proceeds of crime. Once a finding of that nature is recorded, the property stands forfeited to the Central Government free from encumbrances.

Section 120 - Forfeiture of property in certain cases

How Section 120 forfeiture proceedings work

• Section 119 notice: The process under Section 120 is linked to the show-cause notice issued under Section 119.
• Explanation and evidence: The Court considers the affected person's explanation together with the material available before it.
• Opportunity of hearing: A reasonable opportunity of being heard must be given to the affected person and, where applicable, to the person through whom the property is held.
• Ex parte finding: Failure to appear or represent the case within the thirty-day period in the notice can permit the Court to proceed on the evidence available.
• Identification of property: If the precise tainted property cannot be individually identified, the Court may specify the property that, to the best of its judgment, represents proceeds of crime.
• Effect of forfeiture: Property found to be proceeds of crime stands forfeited to the Central Government free from encumbrances.
• Company shares: Forfeited shares must be registered by the company in the name of the Central Government as transferee.

Important definitions under Section 111 BNSS

Related provisions of the BNSS

Section 120 forms part of the BNSS Chapter dealing with reciprocal arrangements and the procedure for attachment and forfeiture of property. It should be read with the provisions immediately surrounding it, particularly:

• Section 116 - Identifying unlawfully acquired property
• Section 117 - Seizure or attachment of property
• Section 118 - Management of properties seized or forfeited under this Chapter
• Section 119 - Notice of forfeiture of property

Section 121 - Fine in lieu of forfeiture

Section 121 provides a further safeguard where only the source of part of a property has not been proved. In such a case, after a declaration of forfeiture under Section 120, the Court may be required to give the affected person an option to pay a fine equal to the market value of that part, subject to the statutory conditions.

Section 122 - Certain transfers to be null and void

Section 122 addresses transfers made after an attachment order under Section 117(1) or after issue of a notice under Section 119. For proceedings under the Chapter, such transfers may be ignored and, if the property is subsequently forfeited under Section 120, the transfer is treated as null and void.

Official legal resources

For the authoritative statutory text and commencement notification, refer to the official Government of India resources linked in the right-hand panel.