UAPA Sections 26 and 27: Forfeiture of Proceeds of Terrorism
Sections 26 and 27 of the Unlawful Activities (Prevention) Act, 1967 (UAPA) govern judicial forfeiture of property linked to terrorism and procedural safeguards, including written notice, the right to be heard and protection for certain bona fide transferees.
Section 26 - Court to order forfeiture of proceeds of terrorism
Section 26 empowers a court to order forfeiture of property constituting proceeds of terrorism, following confirmation of the seizure or attachment order under Section 25(6). A prosecution of the person possessing the property is not a prerequisite.
Statutory provision
Where any property is seized or attached on the ground that it constitutes proceeds of terrorism and the court confirms the order in this regard under sub-section (6) of section 25, it may order forfeiture of such property, whether or not the person from whose possession it is seized or attached, is prosecuted in a court for an offence under Chapter IV or Chapter VI.
Meaning: Forfeiture is a judicial measure against property linked to terrorism, distinct from punishment following conviction. The property must fall within the statutory scope of proceeds of terrorism, and the court must act in accordance with the safeguards in Section 27. See also Sections 24, 24A and 25 on the meaning of proceeds, liability to forfeiture and seizure or attachment.
Section 27 - Issue of show cause notice before forfeiture of proceeds of terrorism
Section 27 makes prior notice and an opportunity to contest forfeiture mandatory and provides for handling property while proceedings are pending.
Statutory provision
(1) No order forfeiting any proceeds of terrorism shall be made under section 26 unless the person holding or in possession of such proceeds is given a notice in writing informing him of the grounds on which it is proposed to forfeit the proceeds of terrorism and such person is given an opportunity of making a representation in writing within such reasonable time as may be specified in the notice against the grounds of forfeiture and is also given a reasonable opportunity of being heard in the matter.
(2) No order of forfeiture shall be made under sub-section (1), if such person establishes that he is a bona fide transferee of such proceeds for value without knowing that they represent proceeds of terrorism.
(3) It shall be competent for the court to make an order in respect of property seized or attached,—
(a) directing it to be sold if it is a perishable property and the provisions of section 459 of the Code shall, as nearly as may be practicable, apply to the net proceeds of such sale;
(b) nominating any officer of the Central Government or the State Government, in the case of any other property, to perform the function of the Administrator of such property subject to such conditions as may be specified by the court.
Procedure and safeguards under Sections 26 and 27
1. Judicial confirmation and forfeiture
Under Section 25(6), a person aggrieved by an order of the Designated Authority may appeal to the court within 30 days of receiving the order. Section 26 addresses forfeiture where the court confirms the seizure or attachment.
2. Written show cause notice and hearing
Before forfeiture, the person holding or possessing the property must receive written grounds, reasonable time to make a written representation and a reasonable opportunity of being heard. The statute does not prescribe a single fixed response period for every case.
3. Protection of bona fide transferees
A transferee who proves that the property was acquired for value and without knowledge of its connection to proceeds of terrorism is protected against forfeiture under Section 27(2).
4. Perishable property and administration
The court may direct the sale of perishable property and apply the specified statutory procedure to sale proceeds. For other property, it may appoint an appropriate government officer as Administrator, subject to conditions set by the court.
5. Appeal against forfeiture
Section 28 separately provides an appeal to the jurisdictional High Court against a forfeiture order under Section 26, generally within one month of receipt of the order. Further related provisions on third-party claims and property management appear in Sections 28 to 32.
Note: The original page mistakenly placed the text of Section 24 under its Section 26 heading. The Section 26 provision above reflects the official consolidated Act. References to the Code in the statutory text are retained as enacted; applicability of procedural legislation depends on the governing law and transitional provisions.
Official text and related law
Read the Unlawful Activities (Prevention) Act, 1967 on India Code or the official consolidated Act (PDF). The Ministry of Home Affairs Act PDF is another government reference.