Foreign Contribution (Regulation) Act, 2010

Section 29 FCRA 2010 - Adjudication of Confiscation

Section 29 of the Foreign Contribution (Regulation) Act, 2010 deals with the authority competent to adjudge confiscation of an article, currency or security that is liable to confiscation under Section 28. It also empowers the adjudicating court or officer, after adjudication, to make an appropriate order regarding disposal, confiscation or delivery of the seized property.

In simple terms: Section 28 creates the liability to confiscation when seized property is adjudged to have been received or obtained in contravention of the FCRA. Section 29 identifies who may decide that confiscation and what may be done with the seized property after adjudication.

Text and meaning of Section 29

Section 29(1): Confiscation referred to in Section 28 may be adjudged without limit by the Court of Session within whose local jurisdiction the seizure was made. It may also be adjudged, subject to the prescribed limit, by an officer not below the rank of an Assistant Sessions Judge whom the Central Government specifies by notification in the Official Gazette.

Section 29(2): After adjudication is concluded, the Sessions Judge or Assistant Sessions Judge may make an appropriate order for disposal of the seized article, currency or security, including confiscation or delivery to a person claiming entitlement to possession, as applicable under the Act.

Who can adjudicate confiscation?

AuthorityJurisdiction under Section 29
Court of SessionMay adjudge confiscation without a monetary limit, provided the seizure was made within its local jurisdiction.
Specified officer not below the rank of Assistant Sessions JudgeMay adjudge confiscation only within the limit prescribed under the Foreign Contribution (Regulation) Rules, 2011 and when specified by Central Government notification.

Rule 19 limit under the FCRA Rules, 2011

Rule 19 of the Foreign Contribution (Regulation) Rules, 2011 prescribes the monetary ceiling for adjudication by the officer referred to in Section 29(1)(b). The rule describes the limit as ten lakh rupees for the value of an article or the amount of currency seized under Section 25.

Drafting note: The currently hosted official rules PDF displays a numerical figure alongside the words "Ten Lakh only" that appears internally inconsistent. The words "Ten Lakh only" are used here to avoid reproducing that apparent numerical formatting discrepancy.

Related provisions

How Section 29 operates

The adjudication mechanism follows the seizure and confiscation provisions in Chapter VI of the Act. A seizure under Section 25 does not by itself complete confiscation. Section 28 makes the seized property liable to confiscation only if the statutory contravention is adjudged under Section 29. The procedure is therefore adjudicatory, and Section 30 expressly protects the affected person's opportunity to make a representation before confiscation is ordered.

Key takeaway

Section 29 is the adjudication provision for confiscation under the FCRA. The Court of Session can adjudicate without a monetary ceiling within the territorial jurisdiction specified by the section. A Central Government specified officer of at least Assistant Sessions Judge rank may adjudicate only within the prescribed limit. Any confiscation decision must also be read with the safeguards and remedies in Sections 30 and 31.