Section 121 BNSS: Fine in lieu of forfeiture (Formerly Section 105I CrPC)

Section 121 of Bharatiya Nagarik Suraksha Sanhita, 2023: Fine in lieu of forfeiture

Official Bare Act Text

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

(1) Where the Court makes a declaration that any property stands forfeited to the Central Government under section 120 and it is a case where the source of only a part of such property has not been proved to the satisfaction of the Court, it shall make an order giving an option to the person affected to pay, in lieu of forfeiture, a fine equal to the market value of such part.

(2) Before making an order imposing a fine under sub-section (1), the person affected shall be given a reasonable opportunity of being heard.

(3) Where the person affected pays the fine due under sub-section (1), within such time as may be allowed in that behalf, the Court may, by order, revoke the declaration of forfeiture under section 120 and thereupon such property shall stand released.

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 121

Section 121 provides for the payment of a fine in lieu of forfeiture where the court finds that only a part of the property was acquired through unlawful means and cannot be easily severed.

Partial Illicit Origin: Property acquired partly from lawful income and partly from illicit proceeds.
Non-Severable Property: Physical partitioning or division is impracticable without destroying utility.
Fine in Lieu Option: Court may give the owner an option to pay a fine equal to the market value of the illicit portion in lieu of absolute forfeiture.

Key Landmark Precedents:

State of M.P. v. Balram Mihani (2010) 2 SCC 602: Affirmed that the option of paying a fine in lieu of forfeiture prevents disproportionate economic destruction of composite family properties.
Aslam Mohammad Merchant v. Competent Authority (2008) 14 SCC 186: Highlighted the equitable nature of financial substitution where lawful assets are inextricably mingled.

Courtroom Practice & Strategic Litigation Guidance:

If a multi-storey house or factory was built partially with legitimate loans and partially with questioned funds, apply under Section 121 offering to pay the fine for the disputed portion to retain full ownership.