Section 120 BNSS: Forfeiture of property in certain cases (Formerly Section 105H CrPC)

Section 120 of Bharatiya Nagarik Suraksha Sanhita, 2023: Forfeiture of property in certain cases

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) The Court may, after considering the explanation, if any, to the show-cause notice issued under section 119 and the material available before it and after giving to the person affected (and in a case where the person affected holds any property specified in the notice through any other person, to such other person also) a reasonable opportunity of being heard, by order, record a finding whether all or any of the properties in question are proceeds of crime:

Provided that if the person affected (and in a case where the person affected holds any property specified in the notice through any other person such other person also) does not appear before the Court or represent his case before it within a period of thirty days specified in the show-cause notice, the Court may proceed to record a finding under this sub-section ex parte on the basis of evidence available before it.

(2) Where the Court is satisfied that some of the properties referred to in the show-cause notice are proceeds of crime but it is not possible to identify specifically such properties, then, it shall be lawful for the Court to specify the properties which, to the best of its judgment, are proceeds of crime and record a finding accordingly under sub-section (1).

(3) Where the Court records a finding under this section to the effect that any property is proceeds of crime, such property shall stand forfeited to the Central Government free from all encumbrances.

(4) Where any shares in a company stand forfeited to the Central Government under this section, then, the company shall, notwithstanding anything contained in the Companies Act, 2013 or the Articles of Association of the company, forthwith register the Central Government as the transferee of such shares.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Inquiry Sec 2(1)(g) Investigation Sec 2(1)(h) Victim Sec 2(1)(w)

Legal Commentary & Landmark Judgments: Section 120

Section 120 regulates the final adjudication and forfeiture of property in certain cases, empowering the court, after considering the cause shown, to pass a formal order of forfeiture.

Adjudication Hearing: Court considers the reply, examines evidence, and affords reasonable opportunity of being heard.
Objective Finding: Recording a definitive finding that the property constitutes unlawfully acquired proceeds of crime.
Vesting in State: Property vests absolutely in the State Government free from all encumbrances.

Key Landmark Precedents:

Aslam Mohammad Merchant v. Competent Authority (2008) 14 SCC 186: The Supreme Court held that forfeiture orders must be supported by cogent findings of fact showing that the property was purchased from criminal proceeds, not legitimate earnings.
J. Jayalalitha v. State of Tamil Nadu (2017) 11 SCC 718: Affirmed the power of the trial court to order absolute forfeiture of illicitly amassed assets upon conviction.

Courtroom Practice & Strategic Litigation Guidance:

Produce complete bank accounts, income tax acknowledgments, and loan sanction letters to prove that the property was acquired from lawful sources, compelling the court to discharge the property under Section 120.