Forfeiture of property in certain cases.
120. (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.
Read also : Section 106 in THE BHARATIYA NYAYA SANHITA, 2023 – BNS