AAP Tax Law - Indian law and legal resources

Unlawful Activities (Prevention) Act, 1967 • Chapter V

UAPA Sections 24, 24A and 25: Proceeds of Terrorism, Forfeiture, Seizure and Appeal

Sections 24, 24A and 25 of the Unlawful Activities (Prevention) Act, 1967 (UAPA) regulate property intended for terrorism, prohibit possession of proceeds of terrorism, and prescribe the procedure for seizure, attachment, review and appeal. The provisions form part of Chapter V, which deals with forfeiture of proceeds of terrorism or property intended for use in terrorism.

Section 24: Property intended to be used for terrorism

Legal provision. In Chapter V, unless the context otherwise requires, every reference to "proceeds of terrorism" includes any property intended to be used for terrorism. Accordingly, the chapter is not confined to assets obtained from an already committed terrorist offence: property earmarked for terrorism also falls within its reach.

This section was substituted by the Unlawful Activities (Prevention) Amendment Act, 2012 (Act 3 of 2013), section 10, effective 1 February 2013. The Chapter V heading was also expanded to refer expressly to property intended to be used for terrorism.

Section 24A: Forfeiture of proceeds of terrorism

Sub-section (1): Prohibition on possession

No person may hold or possess proceeds of terrorism.

Sub-section (2): Property liable to forfeiture

Proceeds of terrorism held by a terrorist organisation, terrorist gang or any other person are liable to forfeiture to the Central Government or State Government, as applicable, under the procedure in Chapter V. This liability applies whether or not the terrorist or other person has been prosecuted or convicted for an offence under Chapter IV or Chapter VI.

Sub-section (3): Equivalent-value property

Where proceedings have commenced under section 24A, the court may order attachment or forfeiture of property equivalent to the proceeds of terrorism, or equivalent to their value, involved in the offence. The court's order and statutory process remain necessary; forfeiture is not automatic merely because an allegation is made.

Amendment: Section 24A was inserted as part of the changes brought into force on 1 February 2013 by Act 3 of 2013, section 10.

Section 25: Powers of investigating officer and Designated Authority; appeal

Section 25 sets out safeguards and time limits when property is suspected to represent proceeds of terrorism in investigations of offences under Chapter IV or Chapter VI.

Section 25(1): Seizure or attachment with prior written approval

If an investigating officer has reason to believe that property connected with the investigation represents proceeds of terrorism, the officer may order its seizure with prior written approval from the Director General of Police of the State in which the property is situated. Where the investigation is conducted by an officer of the National Investigation Agency (NIA), prior written approval of the Director General of the NIA is required. This NIA approval alternative reflects the 2019 amendment (Act 28 of 2019, section 3, effective 14 August 2019).

Where physical seizure is impracticable, the officer may attach the property, restricting transfer or other dealings without prior permission from the officer or the Designated Authority before whom it is produced. A copy of the order must be served on the person concerned.

Section 25(2): Report within 48 hours

The investigating officer must inform the Designated Authority within 48 hours of seizure or attachment.

Section 25(3): Review within 60 days and opportunity to respond

The Designated Authority must confirm or revoke the seizure or attachment order within 60 days of production of the property. The person whose property is affected must have an opportunity to make a representation.

Section 25(4): Immovable property

Attached immovable property is treated as produced before the Designated Authority when the investigating officer submits the report and places it at the Authority's disposal.

Section 25(5): Seizure and detention of cash

An investigating officer may seize and detain cash where there are reasonable grounds to suspect that it is intended for terrorism or forms all or part of the resources of a terrorist organisation. The cash must be released within 48 hours of seizure unless the matter is before the Designated Authority and that Authority orders its retention beyond that period.

For this sub-section, "cash" includes:

  • Coins or notes in any currency;
  • Postal orders;
  • Traveller's cheques;
  • Credit cards, debit cards and cards serving a similar purpose (added by the 2008 amendment);
  • Banker's drafts; and
  • Other monetary instruments specified by written order of the Central Government or relevant State Government.

Section 25(6): Appeal within 30 days

A person aggrieved by an order of the Designated Authority may appeal to the court within 30 days of receiving the order. The court may confirm the attachment or seizure, or revoke the order and direct release of the property.

Key statutory deadlines

  • 48 hours: Inform the Designated Authority after seizure or attachment.
  • 60 days: Designated Authority to confirm or revoke the order after production.
  • 48 hours: Release seized cash unless further retention is authorised by the Designated Authority.
  • 30 days: Appeal to the court from receipt of the Designated Authority's order.