Section 499 BNSS: Payment to Innocent Purchaser of Money Found on Accused
Section 499 of the Bharatiya Nagarik Suraksha Sanhita, 2023 provides limited monetary relief to a bona fide purchaser who unknowingly bought stolen property from a person later convicted of theft or receiving stolen property.
Text and effect of Section 499 BNSS
Where a person is convicted of an offence that includes or amounts to theft or receiving stolen property, and another person proves that he bought that stolen property without knowing, or having reason to believe, that it was stolen, the Court may grant relief if money was taken from the convicted person at the time of arrest.
The relief is available on the purchaser's application and after the stolen property is restored to the person entitled to possession. The Court may order payment from the money taken from the convicted person, but the amount cannot exceed the price paid by the innocent purchaser. The payment is to be delivered within six months from the date of the order.
Essential conditions for relief under Section 499
- There must be a conviction for an offence involving theft or receiving stolen property.
- The applicant must have purchased the stolen property from the convicted person.
- The purchaser must have acted in good faith, without knowledge or reason to believe that the property was stolen.
- Money must have been taken from the possession of the convicted person on arrest.
- The stolen property must be restored to the person legally entitled to its possession.
- The innocent purchaser must make an application to the Court.
- The Court's order is discretionary, and the amount cannot exceed the actual purchase price.
Purpose of Section 499 BNSS
The provision balances the rights of the true owner with the hardship faced by a purchaser who paid for property without knowing that it was stolen. The true owner receives back the property, while the bona fide purchaser may recover, from money found on the convicted person, an amount up to the price actually paid.
Meaning of an innocent or bona fide purchaser
For the purpose of Section 499, the purchaser must show absence of both actual knowledge and circumstances giving reason to believe that the property was stolen. The protection is therefore not intended for a purchaser who ignored suspicious circumstances or knowingly participated in dealing with stolen property.
Application and Court order
Relief is not automatic. The purchaser has to apply to the Court and establish the statutory requirements. The Court may then direct payment from the money that was taken from the convicted person on arrest. The statutory ceiling is the price paid by the purchaser; Section 499 does not authorize an award exceeding that amount.
Appeal against an order under Section 499
Section 500 BNSS expressly provides an appeal against an order made under Section 499. A person aggrieved may appeal to the Court to which appeals ordinarily lie from convictions by the Court or Magistrate that made the order. The appellate Court may stay, modify, alter or annul the order and may pass further orders that are just.
Related provisions on disposal of property
Section 499 forms part of Chapter XXXVI of the BNSS dealing with disposal of property. It should be read with Section 497 on custody and disposal of property pending investigation, inquiry or trial, and Section 498 on disposal of property at the conclusion of proceedings.
Practical summary
Section 499 is a restitution-oriented provision. It does not transfer the stolen property to the purchaser. Instead, the property goes back to the person entitled to possession, while the innocent purchaser may receive limited reimbursement from money found on the convicted person, subject to the Court's satisfaction and the statutory conditions.
Last reviewed: 12 September 2026.