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Unlawful Activities (Prevention) Act, 1967 | Chapter V

UAPA Sections 33 and 34: Forfeiture of Property and Transfer of Shares

Sections 33 and 34 of the Unlawful Activities (Prevention) Act, 1967 (UAPA) regulate court-ordered attachment, forfeiture or confiscation of property in specified terrorism-related cases, and registration of forfeited company shares in the name of the Central or State Government.

Key provisions

SectionSubjectLegal effect
33Forfeiture of property of certain personsAuthorises specified court orders for attachment during trial, forfeiture following conviction, value-equivalent property and confiscation where trial cannot conclude.
34Company to transfer shares to GovernmentRequires the company to register the appropriate Government as transferee of shares forfeited under Chapter V on receiving the court order.

Meaning and application of Section 33

Attachment is a court-ordered restraint over property while proceedings are pending; it does not, by itself, mean that title has permanently passed to the Government. Under section 33(1), a court may attach some or all movable or immovable property of a person accused under Chapter IV or Chapter VI during the trial, if not already attached under Chapter V.

Forfeiture after conviction: Section 33(2) allows the court, in addition to imposing punishment, to declare specified property belonging to a convicted person forfeited to the Central Government or State Government, free from encumbrances. This requires a written court order.

Counterfeit currency and equivalent value: Section 33(3) addresses offences involving high-quality counterfeit Indian currency, including equivalent-value property and the face value of associated currency seized with it. Section 33(4) covers property equivalent to the value of the proceeds of terrorism involved in an offence under Chapter IV or VI.

Where trial cannot conclude: Section 33(5) permits confiscation on the basis of material evidence produced before the court if a trial cannot be completed because of the accused person's death, declaration as a proclaimed offender, or another reason. The court's statutory powers are distinct from automatic confiscation.

Meaning and application of Section 34

If company shares are forfeited to the Central Government or State Government under Chapter V, section 34 requires the company, upon receiving the court's order, to register that Government as the transferee immediately, despite contrary provisions of the company's articles. The section's enacted text expressly refers to the Companies Act, 1956; the reference is retained in the statutory wording below and should be read in light of applicable company-law transition and saving provisions.

Text of Sections 33 and 34

The provisions below reproduce the operative wording, including section 33(3) to (5), introduced by the Unlawful Activities (Prevention) Amendment Act, 2012 (Act 3 of 2013), effective 1 February 2013.

Section 33 Forfeiture of property of certain persons

(1) Where any person is accused of an offence under Chapter IV or Chapter VI, it shall be open to the court to pass an order that all or any of the properties, movable or immovable or both, belonging to him, shall, during the period of such trial, be attached, if not already attached under this Chapter.

(2) Where a person has been convicted of any offence punishable under Chapter IV or Chapter VI, the court may, in addition to awarding any punishment, by order in writing, declare that any property, movable or immovable or both, belonging to the accused and specified in the order, shall stand forfeited to the Central Government or the State Government, as the case may be, free from all encumbrances.

(3) Where any person is accused of an offence concerning high quality counterfeit Indian currency, the court may pass an order directing attachment or forfeiture, as the case may be, of property equivalent to the value of such high quality counterfeit Indian currency involved in the offence including the face value of such currency which are not defined to be of high quality, but are part of the common seizure along with the high quality counterfeit Indian currency.

(4) Where a person is accused of an offence punishable under Chapter IV or Chapter VI, the court may pass an order directing attachment or forfeiture, as the case may be, of property equivalent to or the value of the proceeds of terrorism involved in the offence.

(5) Where any person is accused of an offence under Chapter IV or Chapter VI, it shall be open to the court to pass an order that all or any of the property, movable or immovable or both, belonging to him shall, where the trial under the Act cannot be concluded on account of the death of the accused or being declared a proclaimed offender or for any other reason, be confiscated on the basis of material evidence produced before the court.

Section 34 Company to transfer shares to Government

Where any share in a company stand forfeited to the Central Government or the State Government, as the case may be, under this Chapter, then, the company shall, on receipt of the order of the court, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or the articles of association of the company, forthwith register the Central Government or the State Government, as the case may be, as the transferee of such share.

Related provisions and official legal sources

Read these provisions alongside sections 24, 24A and 25 (proceeds of terrorism, forfeiture and investigative powers), sections 26 and 27 (court orders and notice), and sections 28 to 32 (appeals, third-party claims, designated authority and transfers).

For the authoritative legislation and amendments, consult the Ministry of Home Affairs - UAPA text (PDF), India Code - Unlawful Activities (Prevention) Act, 1967, and Ministry of Home Affairs - Acts. Relevant amendments and the law applicable on the date of proceedings should also be checked.