Section 105H CrPC: Forfeiture of property in certain cases

Code of Criminal Procedure, 1973

Section 105H CrPC at a Glance

Section 105H CrPC deals with forfeiture of property in certain cases. From 1 July 2024 it is replaced by Section 120 BNSS.

What Section 105H CrPC Says

105H. Forfeiture of property in certain cases

(1) The Court may, after considering the explanation, if any, to the show-cause notice issued under section 105G 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, 1956 (1 of 1956) or the articles of association of the company, forthwith register the Central Government as the transferee of such shares.

Source: Section 105H, Code of Criminal Procedure, 1973

Section 105H CrPC in Simple Words

Section 105H of the Code of Criminal Procedure, 1973 deals with forfeiture of property in certain cases.

After a show-cause notice under Section 105G CrPC, the Court may by order record a finding whether all or any of the properties in question are proceeds of crime, after giving a reasonable opportunity of being heard.

Where the Court records such a finding, the property shall stand forfeited to the Central Government free from all encumbrances.

When Section 105H CrPC Applies

  • Section 105H(1) CrPC applies after the Court has considered the explanation, if any, to the show-cause notice issued under Section 105G CrPC 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 105H(1) CrPC 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 105H(1) CrPC 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 105H(2) CrPC 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 105H(1) CrPC.
  • Section 105H(3) CrPC 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 105H(4) CrPC 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, 1956 or the articles of association of the company.

Time Limits Under Section 105H CrPC

  • The proviso to Section 105H(1) CrPC 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: โ€œwithin a period of thirty days specified in the show-cause noticeโ€
  • Section 105H(4) CrPC says the company shall forthwith register the Central Government as the transferee of the forfeited shares.Act text: โ€œforthwith register the Central Government as the transferee of such shares.โ€

Example of Section 105H CrPC

A Court has issued a show-cause notice under Section 105G CrPC to Rajesh about a house. Rajesh holds the house through Meena. The Court considers the explanation to the show-cause notice and the material available before it. Under Section 105H(1) CrPC, the Court gives Rajesh and Meena a reasonable opportunity of being heard. The Court then records a finding that the house is proceeds of crime. Under Section 105H(3) CrPC, the house shall stand forfeited to the Central Government free from all encumbrances.

When Section 105H CrPC Does Not Apply

  • Section 105H CrPC 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 105G CrPC covers under the heading Notice of forfeiture of property.
  • Section 105H CrPC speaks of properties that are proceeds of crime. It does not deal with the meaning of proceeds of crime, which Section 105A CrPC covers under the heading Definitions.

Section 105H CrPC Under BNSS 120: What Changed

Section 105H CrPC is now covered under Section 120 BNSS.

Section 105H of the Code of Criminal Procedure, 1973 is found in Section 120 of the Bharatiya Nagarik Suraksha Sanhita, 2023 from 1 July 2024, under the same heading. Section 120(1) BNSS refers to the show-cause notice issued under Section 119 BNSS where Section 105H(1) CrPC referred to the show-cause notice issued under Section 105G CrPC. Section 120(4) BNSS refers to the Companies Act, 2013 where Section 105H(4) CrPC referred to the Companies Act, 1956. The rest of the text is the same.

View detailed comparison (CrPC 105H vs BNSS 120) โ†’

FAQs on Section 105H CrPC

Who must be heard before the Court records a finding under Section 105H CrPC, and when may it proceed ex parte?โ–ผ

Under Section 105H(1) CrPC, the Court gives a reasonable opportunity of being heard to the person affected and, where the person affected holds any property specified in the notice through any other person, to such other person also. The proviso to Section 105H(1) CrPC says that if the person affected, or such other person, 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 ex parte on the basis of evidence available before it.

What does Section 105H(2) CrPC say where the properties cannot be specifically identified?โ–ผ

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, Section 105H(2) CrPC says 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 105H(1) CrPC.

What follows when the Court records a finding under Section 105H CrPC?โ–ผ

Where the Court records a finding that any property is proceeds of crime, Section 105H(3) CrPC says such property shall stand forfeited to the Central Government free from all encumbrances. Where any shares in a company stand forfeited to the Central Government, Section 105H(4) CrPC says the company shall forthwith register the Central Government as the transferee of such shares, notwithstanding anything contained in the Companies Act, 1956 or the articles of association of the company.

Where is Section 105H CrPC found in the BNSS from 1 July 2024?โ–ผ

The Code of Criminal Procedure, 1973 was replaced by the Bharatiya Nagarik Suraksha Sanhita, 2023 from 1 July 2024. Section 105H(1) CrPC is found in Section 120(1) BNSS, Section 105H(2) CrPC is found in Section 120(2) BNSS, Section 105H(3) CrPC is found in Section 120(3) BNSS and Section 105H(4) CrPC is found in Section 120(4) BNSS. The proviso to Section 105H(1) CrPC is found in the proviso to Section 120(1) BNSS.

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Sources: Bare Act Text, Code of Criminal Procedure, 1973 ยท Last updated: 22 Oct 2026 ยท