Section 120 BNSS: Forfeiture of property in certain cases

Section 120 BNSS Bare Act Text

(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.

Source: Section 120, Bharatiya Nagarik Suraksha Sanhita, 2023

Section 120 BNSS in Simple Words

When Section 120 BNSS Applies

• Section 120(1) BNSS applies after the Court has considered the explanation, if any, to the show-cause notice issued under Section 119 BNSS and the material available before it; the Court may by order record a finding whether all or any of the properties in question are proceeds of crime.
• Section 120(1) BNSS requires that the Court first give a reasonable opportunity of being heard 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.
• The proviso to Section 120(1) BNSS applies where the person affected, or such other person, does not appear before the Court or represent his case before it within the period specified in the show-cause notice; the Court may proceed to record a finding ex parte on the basis of evidence available before it.
• Section 120(2) BNSS applies 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; 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 Section 120(1) BNSS.
• Section 120(3) BNSS applies where the Court records a finding to the effect that any property is proceeds of crime; such property shall stand forfeited to the Central Government free from all encumbrances.
• Section 120(4) BNSS applies where any shares in a company stand forfeited to the Central Government; the company shall forthwith register the Central Government as the transferee of such shares, notwithstanding anything contained in the Companies Act, 2013 or the Articles of Association of the company.

Time Limits Under Section 120 BNSS

• The proviso to Section 120(1) BNSS refers to a period of thirty days specified in the show-cause notice, within which the person affected or such other person is to appear before the Court or represent his case before it.Act text: “within a period of thirty days specified in the show-cause notice”
• Section 120(4) BNSS says the company shall forthwith register the Central Government as the transferee of the forfeited shares.Act text: “forthwith register the Central Government as the transferee of such shares.”

Example of Section 120 BNSS

When Section 120 BNSS Does Not Apply

• Section 120 BNSS speaks of the Court recording a finding and the forfeiture that follows. It does not deal with the issue of the show-cause notice, which Section 119 BNSS covers under the heading Notice of forfeiture of property.
• Section 120 BNSS speaks of properties that are proceeds of crime. It does not deal with the meaning of proceeds of crime, which Section 111 BNSS covers under the heading Definitions.

Section 120 BNSS in the CrPC (Previous Law)

FAQs on Section 120 BNSS

Section 120 BNSS: Sub-sections Explained

Sections Related to Section 120 BNSS