(1) Where a police officer making an investigation has reason to believe that any
property is derived or obtained, directly or indirectly, as a result of a criminal activity or from
the commission of any offence, he may, with the approval of the Superintendent of Police or
Commissioner of Police, make an application to the Court or the Judicial Magistrate exercising jurisdiction to take cognizance of the offence or commit for trial or try the case, for the attachment of such property.
(2) If the Court or the Judicial Magistrate has reasons to believe, whether before or
after taking evidence, that all or any of such properties are proceeds of crime, the Court or
the Magistrate may issue a notice upon such person calling upon him to show cause within
a period of fourteen days as to why an order of attachment shall not be made.
(3) Where the notice issued to any person under sub-section (2) specifies any property
as being held by any other person on behalf of such person, a copy of the notice shall also
be served upon such other person.
(4) The Court or the Judicial Magistrate may, after considering the explanation, if any,
to the show-cause notice issued under sub-section (2) and the material fact available before
such Court or Magistrate and after giving a reasonable opportunity of being heard to such
person or persons, may pass an order of attachment, in respect of those properties which
are found to be the proceeds of crime:
Provided that if such person does not appear before the Court or the Magistrate or
represent his case before the Court or Judicial Magistrate within a period of fourteen days
specified in the show-cause notice, the Court or the Judicial Magistrate may proceed to
pass the ex-parte order.
(5) Notwithstanding anything contained in sub-section (2), if the Court or the Judicial
Magistrate is of the opinion that issuance of notice under the said sub-section would
defeat the object of attachment or seizure, the Court or Judicial Magistrate may by an
interim order passed ex-parte direct attachment or seizure of such property, and such order
shall remain in force till an order under sub-section (6) is passed.
(6) If the Court or the Judicial Magistrate finds the attached or seized properties to be
the proceeds of crime, the Court or the Judicial Magistrate shall by order direct the District
Magistrate to rateably distribute such proceeds of crime to the persons who are affected by
such crime.
(7) On receipt of an order passed under sub-section (6), the District Magistrate shall,
within a period of sixty days distribute the proceeds of crime either by himself or authorise
any officer subordinate to him to effect such distribution.
(8) If there are no claimants to receive such proceeds or no claimant is ascertainable
or there is any surplus after satisfying the claimants, such proceeds of crime shall stand
forfeited to the Government.
Explanation.—For the purposes of this section, the word ‘‘property’’ and the
expression ‘‘proceeds of crime’’ shall have the meaning assigned to them in clause (d) of
section 111.
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