[24. Reference to proceeds of terrorism to include any property intended to be used for
terrorism.—In this Chapter, unless the context otherwise requires, all references to “proceeds of
terrorism” shall include any property intended to be used for terrorism.
24A. Forfeiture of proceeds of terrorism.—(1) No person shall hold or be in possession of any
proceeds of terrorism.
(2) Proceeds of terrorism, whether held by a terrorist organisation or terrorist gang or by any other
person and whether or not such terrorist or other person is prosecuted or convicted for any offence under
1. Subs. by Act 35 of 2008, s. 9, for “If any person with intent to aid any terrorist contravenes” (w.e.f. 31-12-2008).
2. Subs. by Act 3 of 2013, s. 8, for “chemical substance of warfare, he shall” (w.e.f.1-2-2013).
3. Subs. by Act 35 of 2008, s. 9, for “Any person who, with the intent to aid any terrorist” (w.e.f. 31-12-2008).
4. Ins. by Act 3 of 2013, s. 9 (w.e.f. 1-2-2013).
5. Subs. by s. 10, ibid., for section 24 (w.e.f. 1-2-2013).
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Chapter IV or Chapter VI, shall be liable to be forfeited to the Central Government or the State
Government, as the case may be, in the manner provided under this Chapter.
(3) Where proceedings have been commenced under this section, the court may pass an order
directing attachment or forfeiture, as the case may be, of property equivalent to, or, the value of the
proceeds of terrorism involved in the offence.]
25. Powers of investigating officer and Designated Authority and appeal against order of
Designated Authority.—(1) If an officer investigating an offence committed under Chapter IV or
Chapter VI, has reason to believe that any property in relation to which an investigation is being
conducted, represents proceeds of terrorism, he shall, with the prior approval in writing of the Director
General of the Police of the State 1
[in which such property is situated, or where the investigation is
conducted by an officer of the National Investigation Agency, with the prior approval of the Director
General of National Investigation Agency, make an order] seizing such property and where it is not
practicable to seize such property, make an order of attachment directing that such property shall not be
transferred or otherwise dealt with except with the prior permission of the officer making such order, or of
the Designated Authority before whom the property seized or attached is produced and a copy of such
order shall be served on the person concerned.
(2) The investigating officer shall duly inform the Designated Authority within forty-eight hours of
the seizure or attachment of such property.
(3) The Designated Authority before whom the seized or attached property is produced shall either
confirm or revoke the order of seizure or attachment so issued within a period of sixty days from the date
of such production:
Provided that an opportunity of making a representation by the person whose property is being seized
or attached shall be given.
(4) In the case of immovable property attached by the investigating officer, it shall be deemed to have
been produced before the Designated Authority, when the investigating officer notifies his report and
places it at the disposal of the Designated Authority.
(5) The investigating officer may seize and detain any cash to which this Chapter applies if he has
reasonable grounds for suspecting that—
(a) it is intended to be used for the purposes of terrorism; or
(b) it forms the whole or part of the resources of a terrorist organisation:
Provided that the cash seized under this sub-section by the investigating officer shall be released
within a period of forty-eight hours beginning with the time when it is seized unless the matter involving
the cash is before the Designated Authority and such Authority passes an order allowing its retention
beyond forty-eight hours.
Explanation.—For the purposes of this sub-section, “cash” means—
(a) coins or notes in any currency;
(b) postal orders;
(c) traveller’ scheques;
2
[(ca) credit or debit cards or cards that serve a similar purpose;]
(d) banker’s drafts; and
(e) such other monetary instruments as the Central Government or, as the case may be, the State
Government may specify by an order made in writing.
1. Subs. by Act 28 of 2019, s. 3, for “in which such property is situated, make an order” (w.e.f. 14-8-2019)
2. Ins. by Act 35 of 2008, s. 11 (w.e.f. 31-12-2008).
16
(6) Any person aggrieved by an order made by the Designated Authority may prefer an appeal to the
court within a period of thirty days from the date of receipt of the order, and the court may either confirm
the order of attachment of property or seizure so made or revoke such order and release the property.
26. Court to order forfeiture of proceeds of terrorism.—Where any property is seized or attached
on the ground that it constitutes proceeds of terrorism and the court confirms the order in this regard
under sub-section (6) of section 25, it may order forfeiture of such property, whether or not the person
from whose possession it is seized or attached, is prosecuted in a court for an offence under Chapter IV or
Chapter VI.
27. Issue of show cause notice before forfeiture of proceeds of terrorism.—(1) No order forfeiting
any proceeds of terrorism shall be made under section 26 unless the person holding or in possession of
such proceeds is given a notice in writing informing him of the grounds on which it is proposed to forfeit
the proceeds of terrorism and such person is given an opportunity of making a representation in writing
within such reasonable time as may be specified in the notice against the grounds of forfeiture and is also
given a reasonable opportunity of being heard in the matter.
(2) No order of forfeiture shall be made under sub-section (1), if such person establishes that he is a
bona fide transferee of such proceeds for value without knowing that they represent proceeds of terrorism.
(3) It shall be competent for the court to make an order in respect of property seized or attached,—
(a) directing it to be sold if it is a perishable property and the provisions of section 459 of the
Code shall, as nearly as may be practicable, apply to the net proceeds of such sale;
(b) nominating any officer of the Central Government or the State Government, in the case of any
other property, to perform the function of the Administrator of such property subject to such
conditions as may be specified by the court.
28. Appeal.—(1) Any person aggrieved by an order of forfeiture under section 26 may, within one
month from the date of the receipt of such order, appeal to the High Court within whose jurisdiction, the
court, which passed the order appealed against, is situated.
(2) Where an order under section 26 is modified or annulled by the High Court or where in a
prosecution instituted for any offence under Chapter IV or Chapter VI, the person against whom an order
of forfeiture has been made under section 26 is acquitted, such property shall be returned to him and in
either case if it is not possible for any reason to return the forfeited property, such person shall be paid the
price therefor as if the property had been sold to the Central Government with reasonable interest
calculated from the day of seizure of the property and such price shall be determined in the manner
prescribed.
29. Order of forfeiture not to Interfere with other punishments.—The order of forfeiture made
under this Chapter by the court, shall not prevent the infliction of any other punishment to which the
person affected thereby is liable under Chapter IV or Chapter VI.
30. Claims by third party.—(1) Where any claim is preferred or any objection is made to the seizure
or attachment of any property under section 25 on the ground that such property is not liable to seizure or
attachment, the Designated Authority before whom such property is produced, shall proceed to
investigate the claim or objection:
Provided that no such investigation shall be made where the Designated Authority considers that the
claim or objection is designed to cause unnecessary delay.
(2) Where an appeal has been preferred under sub-section (6) of section 25 and any claimant or
objector establishes that the property specified in the notice issued under section 27 is not liable to be
forfeited under this Chapter, the said notice shall be withdrawn or modified accordingly.
31. Powers of Designated Authority.—The Designated Authority, acting under the provisions of
this Chapter, shall have all the powers of a civil court required for making a full and fair inquiry into the
matter before it.
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32. Certain transfers to be null and void.—Where, after the issue of an order under section 25 or
issue of a notice under section 27, any property referred to in the said order or notice is transferred by any
mode whatsoever, such transfer shall, for the purpose of the proceedings under this Chapter, be ignored
and if such property is subsequently forfeited, the transfer of such property shall be deemed to be null and
void.
33. Forfeiture of property of certain persons.—(1) Where any person is accused of an offence
under Chapter IV or Chapter VI, it shall be open to the court to pass an order that all or any of the
properties, movable or immovable or both, belonging to him, shall, during the period of such trial, be
attached, if not already attached under this Chapter.
(2) Where a person has been convicted of any offence punishable under Chapter IV or Chapter VI,
the court may, in addition to awarding any punishment, by order in writing, declare that any property,
movable or immovable or both, belonging to the accused and specified in the order, shall stand forfeited
to the Central Government or the State Government, as the case may be, free from all encumbrances.
1
[(3) Where any person is accused of an offence concerning high quality counterfeit Indian currency,
the court may pass an order directing attachment or forfeiture, as the case may be, of property equivalent
to the value of such high quality counterfeit Indian currency involved in the offence including the face
value of such currency which are not defined to be of high quality, but are part of the common seizure
along with the high quality counterfeit Indian currency.
(4) Where a person is accused of an offence punishable under Chapter IV or Chapter VI, the court
may pass an order directing attachment or forfeiture, as the case may be, of property equivalent to or the
value of the proceeds of terrorism involved in the offence.
(5) Where any person is accused of an offence under Chapter IV or Chapter VI, it shall be open to the
court to pass an order that all or any of the property, movable or immovable or both, belonging to him
shall, where the trial under the Act cannot be concluded on account of the death of the accused or being
declared a proclaimed offender or for any other reason, be confiscated on the basis of material evidence
produced before the court.]
34. Company to transfer shares to Government.—Where any share in a company stand forfeited to
the Central Government or the State Government, as the case may be, under this Chapter, then, the
company shall, on receipt of the order of the court, notwithstanding anything contained in the Companies
Act, 1956 (1 of 1956), or the articles of association of the company, forthwith register the Central
Government or the State Government, as the case may be, as the transferee of such share.