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Section 121 BNSS: Fine in Lieu of Forfeiture

Section 121 of the Bharatiya Nagarik Suraksha Sanhita, 2023 provides an alternative to complete forfeiture in a limited situation. Where property has been declared forfeited under Section 120 but the source of only a part of that property has not been proved to the Court's satisfaction, the Court must give the affected person an option to pay a fine equal to the market value of that part.

Current law: The Bharatiya Nagarik Suraksha Sanhita, 2023 is Act 46 of 2023. It came into force on 1 July 2024, subject to the notified exception concerning the First Schedule entry relating to Section 106(2) of the Bharatiya Nyaya Sanhita, 2023.

Meaning and scope of Section 121 BNSS

Section 121 is linked directly to Section 120 BNSS. It applies after the Court has made a declaration that property stands forfeited to the Central Government under Section 120.

The provision is limited to cases where the source of only a part of the property has not been proved to the satisfaction of the Court. In that situation, instead of allowing the entire property to remain forfeited, the Court is required to give the affected person an option to pay a fine equal to the market value of the unproved part.

In simple terms: if only a part of the property's source remains unexplained, Section 121 permits the affected person to preserve the property by paying a fine corresponding to the market value of that unexplained part, subject to the Court's order and the statutory procedure.

Section 121 - Fine in lieu of forfeiture

(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.

When can a fine be offered instead of forfeiture?

Section 121 does not create a general right to substitute every forfeiture order with a fine. Its operation depends on the conditions stated in the provision.

  • A Section 120 forfeiture declaration must already exist.
  • Only part of the source must remain unproved. The provision addresses a case where the source of only a part of the property has not been proved to the Court's satisfaction.
  • The Court must provide the option. In such a case, the Court shall make an order giving the affected person an option to pay a fine in lieu of forfeiture.
  • The amount is linked to market value. The fine must equal the market value of the part whose source has not been proved.
  • A hearing is required. Before imposing the fine, the affected person must receive a reasonable opportunity of being heard.

Procedure and effect of paying the fine

1. Declaration under Section 120

The process begins with a forfeiture declaration under Section 120. Section 120 permits the Court, after considering the Section 119 show-cause response and giving the affected person a reasonable opportunity of hearing, to record a finding whether property is proceeds of crime.

2. Court identifies the partly unproved source

Section 121 becomes relevant where the Court is dealing with property for which the source of only a part has not been proved to its satisfaction.

3. Option to pay market value

The Court must give the affected person an option to pay, in lieu of forfeiture, a fine equal to the market value of that part.

4. Reasonable opportunity of hearing

Before an order imposing the fine is made, sub-section (2) expressly requires that the affected person be given a reasonable opportunity of being heard.

5. Payment within the permitted time

If the affected person pays the amount within the time allowed by the Court, sub-section (3) permits the Court to revoke the declaration of forfeiture made under Section 120.

6. Property stands released

Once the Court revokes the forfeiture declaration following payment, the property stands released.

Important terms for understanding Section 121

Property

For this Chapter, Section 111 BNSS gives "property" a broad meaning. It covers property and assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible, along with deeds and instruments evidencing title or interest. It also includes property derived or used in the commission of an offence and property obtained through proceeds of crime.

Proceeds of crime

Section 111 defines "proceeds of crime" for this Chapter as property derived or obtained directly or indirectly by a person as a result of criminal activity, including crime involving currency transfers, or the value of such property.

Market value

Section 121 uses market value as the measure of the fine for the part of the property whose source has not been proved. The section itself does not set out a separate valuation formula in its text.

Fine in lieu of forfeiture

In the context of Section 121, this means a monetary amount equal to the market value of the relevant part of the property, offered as an alternative to the continued operation of forfeiture, subject to payment within the time allowed by the Court.

Official legal resources

For the authoritative text of the Bharatiya Nagarik Suraksha Sanhita, 2023 and the commencement notification, use the official Government of India resources provided in the right-hand panel.