THE SMUGGLERS AND FOREIGN EXCHANGE MANIPULATORS  

(FORFEITURE OF PROPERTY) ACT, 1976                                                                                                                                        

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ARRANGEMENT OF SECTIONS 

Last updated: 20-9-2021 

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SECTIONS 

1. Short title, extent and commencement. 

2. Application. 

2A. [Omitted.] 

3. Definitions. 

4. Prohibition of holding illegally acquired property. 

5. Competent authority. 

6. Notice of forfeiture. 

7. Forfeiture of property in certain cases. 

8. Burden of proof. 

9. Fine in lieu of forfeiture. 

10. Procedure in relation to certain trust properties. 

11. Certain transfers to be null and void. 

12. Constitution of Appellate Tribunal. 

12A. Qualifications, terms and conditions of service of Chairperson, and Member. 

13. Notice or order not to be invalid for error in description. 

14. Bar of jurisdiction. 

15. Competent authority and Appellate Tribunal to have powers of civil court. 

16. Information to competent authority. 

17. Certain officers to assist competent authority and Appellate Tribunal. 

18. Power of competent authority to require certain officers to exercise certain powers. 

19. Power to take possession. 

20. Rectification of mistakes. 

21. Findings under other laws not conclusive for proceedings under this Act. 

22. Service of notices and orders. 

23. Protection of action taken in good faith. 

24. Act to have overriding effect. 

25. Provisions of the Act not to apply to certain properties held in trust. 

26. Power to make rules. 

27. Repeal and saving. 

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THE SMUGGLERS AND FOREIGN EXCHANGE MANIPULATORS (FORFEITURE  

OF PROPERTY) ACT, 1976 

ACT NO. 13 OF 1976 

[25th January, 1976.] 

An  Act  to  provide  for  the  forfeiture  of  illegally  acquired  properties of  smugglers  and  foreign 

exchange manipulators and for matters connected therewith or incidental thereto. 

WHEREAS for the effective prevention of smuggling activities and foreign exchange manipulations which 
are  having  a  deleterious  effect  on  the  national  economy  it  is  necessary  to  deprive  persons  engaged  in such 
activities and manipulations of their ill-gotten gains; 

AND WHEREAS such persons have been augmenting such gains by violations of wealth-tax, income-tax 
or  other  laws  or  by  other means  and  have  thereby  been  increasing  their  resources  for  operating  in  a 
clandestine manner; 

AND WHEREAS such persons have in many cases been holding the properties acquired by them through such 

gains in the names of their relatives, associates and confidants; 

BE it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows:— 

1. Short title, extent and commencement.—(1) This Act may be called the Smugglers and Foreign 

Exchange Manipulators (Forfeiture of Property) Act, 1976. 

(2) It extends to the whole of India *except the State of Jammu and Kashmir. 

(3) It shall be deemed to have come into force on the 5th day of November, 1975. 

2. Application.—(1) The provisions of this Act shall apply only to the persons specified in sub-section (2). 

(2) The persons referred to in sub-section (1) are the following, namely:— 

(a) every person— 

(i) who has been convicted under the Sea Customs Act, 1878 (8 of 1878), or the Customs Act,  1962 

(52 of 1962), of an offence in relation to goods of a value exceeding one lakh of rupees; or 

(ii)  who  has  been  convicted  under  the  Foreign  Exchange  Regulation  Act,  1947  (7  of  1947),  or  the 
Foreign Exchange Regulation Act, 1973 (46 of 1973), of an offence, the amount or value involved in which 
exceeds one lakh of rupees; or 

(iii)  who  having  been  convicted  under  the  Sea  Customs  Act,  1878  (8  of  1878),  or  the  Customs  Act, 

1962 (52 of 1962), has been convicted subsequently under either of those Acts; or 

(iv) who having been convicted under the Foreign Exchange Regulation Act, 1947 (7 of 1947), or the 
Foreign  Exchange  Regulation  Act,  1973  (46  of  1973),  has  been  convicted  subsequently  under  either  of 
those Acts; 

(b)  every  person  in  respect  of  whom  an  order  of  detention  has  been  made  under  the  Conservation  of 

Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974): 

Provided that— 

(i) such order of detention, being an order to which the provisions of section 9 or section 12A of the 
said Act do not apply, has not been revoked on the report of the Advisory Board under section 8 of the said 
Act or before the receipt of the report of the Advisory Board or before making a reference to the Advisory 
Board; or 

(ii) such order of detention, being an order to which the provisions of section 9 of the said Act apply, 
has not been revoked before the expiry of the time for, or on the basis of, the review under sub-section (3) 
of section 9, or on the report of the Advisory Board under section 8, read with sub-section (2) of section 9, 
of the said Act; or 

*. Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory 

of Jammu and Kashmir and the Union territory of Ladakh 

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(iii) such order of detention, being an order to which the provision of section 12A of the said Act apply, 
has not been revoked before the expiry of the time for, or on the basis of, the first review under sub-section 
(3) of that section, or on the basis of the report of the Advisory Board under section 8, read with sub-
section (6) of section 12A, of that Act; or 

 (iv) such order of detention has not been set aside by a court of competent jurisdiction; 

(c) every person who is a relative of a person referred to in clause (a) or clause (b); 

(d) every associate of a person referred to in clause (a) or clause (b); 

(e)  any  holder (hereafter in  this  clause referred  to  as  the  present  holder) of  any  property  which 
was at any time previously held by a person referred to in clause (a) or clause (b) unless the present 
holder  or,  as  the  case  may  be,  any  one  who  held  such  property  after  such  person  and  before  the 
present holder, is or was a transferee in good faith for adequate consideration. 

Explanation 1.—For the purposes of sub-clause (i) of clause (a), the value of any goods in relation to 
which a person has been convicted of an offence shall be the wholesale price of the goods in the ordinary 
course of trade in India as on the date of the commission of the offence. 

Explanation 2.—For the purposes of clause (c), “relative”, in relation to a person, means— 

(i) spouse of the person; 

(ii) brother or sister of the person; 

(iii) brother or sister of the spouse of the person; 

(iv) any lineal ascendant or descendant of the person; 

(v) any lineal ascendant or descendant of the spouse of the person; 

(vi) spouse of a person referred to in clause (ii), clause (iii) clause (iv) or clause (v); 

(vii) any lineal descendant of a person referred to in clause (ii) or clause (iii). 

Explanation 3.—For the purposes of clause (d), “associate”, in relation to a person, means— 

(i) any individual who had been or is residing in the residential premises (including outhouses) of 

such person; 

(ii)  any  individual  who  had  been  or  is  managing  the  affairs  or  keeping  the  accounts  of  such 

person; 

(iii) any association of persons, body of individuals, partnership firm, or private company within 
the meaning of the Companies Act, 1956 (1 of 1956), of which such person had been or is a member, 
partner or director; 

(iv) any individual who had been or is a member, partner or director of an association of persons, 
body of individuals, partnership firm or private company referred to in clause (iii) at any time when 
such person had been or is a member, partner or director of such association, body, partnership firm 
or private company; 

(v) any person who had been or is managing the affairs, or keeping the accounts, of an association 

of persons, body of individuals, partnership firm or private company referred to in clause (iii); 

(vi) the trustee of any trust, where,— 

(a) the trust has been created by such person; or 

(b)  the  value  of  the  assets  contributed  by  such  person  (including  the  value  of  the  assets,  if 
any,  contributed  by  him  earlier)  to  the  trust  amounts,  on  the  date  on  which  the  contribution  is 
made, to not less than twenty per cent. of the value of the assets of the trust on that date; 

(vii)  where  the  competent  authority,  for  reasons  to  be  recorded  in  writing,  considers  that  any 

properties of such person are held on his behalf by any other person, such other person. 

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Explanation  4.—For  the  avoidance  of  doubt,  it  is  hereby  provided  that  the  question  whether  any 
person  is  a  person  to  whom  the  provisions  of  this  Act  apply  may  be  determined  with  reference  to  any 
facts,  circumstances  or  events  (including  any  conviction  or  detention)  which  occurred  or  took  place 
before the commencement of this Act. 

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3. Definitions.—(1) In this Act, unless the context otherwise requires,— 

(a) “Appellate Tribunal” means the Appellate Tribunal 2*** constituted under section 12; 

(b)  “competent  authority”  means  an  officer  of  the  Central  Government  authorised  by  it  under  

sub-section (1) of section 5 to perform the functions of a competent authority under this Act; 

(c) “illegally acquired property”, in relation to any person to whom this Act applies, means— 

(i) any property acquired by such person, whether before or after the commencement of this 
Act, wholly or partly out of or by means of any income, earnings or assets derived or obtained 
from  or  attributable  to  any  activity  prohibited  by  or  under  any  law  for  the  time  being  in  force 
relating to any matter in respect of which Parliament has power to make laws; or 

(ii) any property acquired by such person, whether before or after the commencement of this 
Act, wholly or partly out of or by means of any income, earning or assets in respect of which any 
such law has been contravened; or 

(iii) any property acquired by such person, whether before or after the commencement of this 
Act, wholly or partly out of or by means of any income, earnings or assets the source  of which 
cannot be proved and which cannot be shown to be attributable to any act or thing done in respect 
of any matter in relation to which Parliament has no power to make laws; or 

(iv) any property acquired by such person, whether before or after the commencement of this 
Act, for a consideration, or by any means, wholly or partly traceable to any property referred to in 
sub-clauses (i) to (iii) or the income or earnings from such property; 

and includes— 

(A)  any  property  held  by  such  person  which  would  have  been,  in  relation  to  any  previous 
holder  thereof,  illegally  acquired  property  under  this  clause  if  such  previous  holder  had  not 
ceased to hold it, unless such person or any other person who held the property at any time after 
such  previous  holder  or,  where  there  are  two  or  more  such  previous  holders,  the  last  of  such 
previous holders is or was a transferee in good faith for adequate consideration; 

(B) any property acquired by such person, whether before or after the commencement of this 
Act, for a consideration, or by any means, wholly or partly traceable to any property falling under 
item (A), or the income or earnings therefrom; 

(d) “prescribed” means prescribed by rules made under this Act; 

(e) “property” includes any interest in property, movable or immovable; 

(f) “trust” includes any other legal obligation. 

(2) Any reference in this Act to any law which is not in force in any area shall, in relation to that area, 

be construed as a reference to the corresponding law, if any, in force in that area. 

(3) Any reference in this Act to any officer or authority shall, in relation to any area in which there is 
no officer or authority with the same designation, be construed as a reference to such officer or authority 
as may be specified by the Central Government by notification in the Official Gazette. 

1. Section 2A, omitted by Act 28 of 2016, s. 226 (w.e.f. 1-6-2016). 
2. The words “for Forfeited Property” omitted by s. 226, ibid. (w.e.f. 1-6-2016). 

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4. Prohibition of holding illegally acquired property.—(1) As from the commencement of this Act, 
it  shall  not  be  lawful  for  any  person  to  whom  this  Act  applies  to  hold  any  illegally  acquired  property 
either by himself or through any other person on his behalf. 

(2)  Where  any  person  holds  any  illegally  acquired  property  in  contravention  of  the  provisions  of      

sub-section (1), such property shall be liable to be forfeited to the Central Government in accordance with 
the provisions of this Act. 

5.  Competent  authority.—(1)  The  Central  Government  may,  by  order  published  in  the  Official 
Gazette, authorise as many officers of the Central Government (not below the rank of a Joint Secretary to 
the Government), as it thinks fit, to perform the functions of the competent authority under this Act. 

(2) The  competent authorities shall perform  their  functions in respect  of  such  persons  or  classes of 

persons as the Central Government may, by order, direct. 

6.  Notice of forfeiture.—(1)  If,  having  regard to the value  of  the  properties  held  by  any  person  to 
whom this act applies, either by himself or through any other person on his behalf, his known sources of 
income, earnings or assets, and any other information or material available to it as a result of action taken 
under section 18 or otherwise, the competent authority has reason to believe (the reasons for such belief to 
be recorded in writing) that all or any of such properties are illegally acquired properties, it may serve a 
notice upon such person (hereinafter referred to as the person affected) calling upon him within such time 
as  may  be  specified  in  the  notice,  which  shall  not  be  ordinarily  less  than  thirty  days,  to  indicate  the 
sources  of  his  income,  earnings  or  assets,  out  of  which  or  by  means  of  which  he  has  acquired  such 
property,  the  evidence  on  which  he  relies  and  other  relevant  information  and  particulars,  and  to  show 
cause why all or any of such properties, as the case may be, should not be declared to be illegally acquired 
properties and forfeited to the Central Government under this Act. 

(2) Where a notice under sub-section (1) to any person specifies any property as being held on behalf 

of such person by any other person, a copy of the notice shall also be served upon such other person. 

7. Forfeiture of property in certain cases.—(1) The competent authority may, after considering the 
explanation, if any, to the show-cause notice issued under section 6, and the materials 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  illegally 
acquired properties. 

(2)  Where  the  competent  authority  is  satisfied  that  some  of  the  properties  referred  to  in  the  show-
cause notice are illegally acquired properties but is not able to identity specifically such properties, then, it 
shall be lawful for the competent authority to specify the properties which, to the best of its judgment, are 
illegally acquired properties and record a finding accordingly under sub-section (1). 

(3) Where the competent authority records a finding under this section to the effect that any property 
is illegally acquired property, it shall declare that such property shall, subject to the provisions of this Act, 
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 Act, 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. 

8.  Burden  of  proof.—In  any  proceedings  under  this  Act,  the  burden  of  proving  that  any  property 
specified  in  the  notice  served  under  section  6  is  not  illegally  acquired  property  shall  be  on  the  person 
affected. 

9. Fine in lieu of forfeiture.—(1) Where the competent authority makes a declaration that any property stands 
forfeited to the Central Government under section 7 and it is a case where the source of only a part, being less than 
one-half,  of  the  income,  earnings  or  assets  with  which  such  property  was  acquired  has  not  been  proved  to  the 
satisfaction of the competent authority, it shall make an order giving an option to the person affected to pay, in lieu 
of forfeiture, a fine equal to one and one-fifth times the value of such part. 

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Explanation.—For  the  purposes  of  this  sub-section,  the  value  of  any  part  of  income,  earnings  or  assets,  with 

which any property has been acquired, shall be,— 

(a) in the case of any part of income or earnings, the amount of such part of income or earnings; 

(b)  in  the  case  of  any  part  of  assets,  the  proportionate  part  of  the  full  value  of  the  consideration  for  the 

acquisition of such assets. 

(2)  Before  making  an  order  imposing  a  fine  under  sub-section  (1),  the  person  affected  shall  be  given  a 

reasonable opportunity of being heard. 

(3) Where the person affected pays the fine due under sub-section (1), within such time as may be allowed in 
that  behalf,  the  competent  authority  may,  by  order,  revoke  the  declaration  of  forfeiture  under  section  7  and 
thereupon such property shall stand released. 

10. Procedure in relation to certain trust properties.—In the case of any person referred to in clause (vi) of 
Explanation  3  to  sub-section  (2)  of  section  2,  if  the  competent  authority,  on  the  basis  of  the  information  and 
materials  available  to  it,  has  reason  to  believe  (the  reasons  for  such  belief  to  be  recorded  in  writing)  that  any 
property held in trust is illegally acquired property, it may serve a notice upon the author of the trust or, as the case 
may be, the contributor of the assets out of or by means of which such property was acquired by the trust and the 
trustees, calling upon them within such time as may be specified in the notice which shall not ordinarily be less than 
thirty  days,  to  explain  the  source  of  the  money  or  other  assets  out  of  or  by  means  of  which  such  property  was 
acquired  or,  as  the  case  may  be,  the  source  of  the  money  or  other  assets  which  were  contributed  to  the  trust  for 
acquiring such property and thereupon such notice shall be deemed to be a notice served under section 6 and all the 
other provisions of this Act shall apply accordingly. 

Explanation.—For the purposes of this section “illegally acquired property”, in relation to any property held in 

trust, includes— 

(i) any property  which if it  had continued to be held by the  author of the trust or the contributor of such 

property to the trust would have been illegally acquired property in relation to such author or contributor; 

(ii) any property acquired by the trust out of any contributions made by any person which would have been 
illegally  acquired  property  in  relation  to  such  person  had  such  person  acquired  such  property  out  of  such 
contributions. 

11.  Certain  transfers  to  be  null  and  void.—Where  after  the  issue  of  a  notice  under  section  6  or  under        

section 10, any property referred to in the said notice is transferred by any mode whatsoever such transfer shall, for 
the  purposes  of  the  proceedings  under  this  Act,  be  ignored  and  if  such  property  is  subsequently  forfeited  to  the 
Central Government under section 7, then, the transfer of such property shall be deemed to be null and void. 

12.  Constitution  of  Appellate  Tribunal.—(1)  The  Central  Government  may,  by  notification  in  the  Official 
Gazette, constitute an Appellate Tribunal 1*** consisting of a Chairman and such number of other members (being 
officers  of  the  Central  Government  not  below  the  rank  of  a  Joint  Secretary  to  the  Government)  as  the  Central 
Government thinks fit, to be appointed by the Government for 2[hearing appeals against the orders made— 

(a) under section 7, sub-section (1)   of section 9 or section 10; 

(b) under section 68F, section 68-I, sub-section (1) of section 68K or section 68L, of the  Narcotic  Drugs 

and Psychotropic Substances Act, 1985 (61 of 1985); 

(c)  by  the  Adjudicating  Authority  or  any  other  authority  under  the  Prevention  of  Money-laundering         

Act, 2002, (15 of 2003);] 

3[(d)  by  the  Adjudicating  Authorities,  Competent  Authorities  and  the  Qualifications,  Special 

Director (Appeals) under the Foreign Exchange Management Act, 1999 (42 of 1999).] 

1. The words “to be called the Appellate Tribunal for Forfeited Property” omitted by Act 28 of 2016, s. 226 (w.e.f. 1-6-2016). 
2. Subs. by s. 226, ibid., for “hearing appeals against the orders made under section 7, sub-section (1) of section 9 or section 10” 

(w.e.f. 1-6-2016).   

3. Ins. by Act 7 of 2017, s. 164 (w.e.f. 26-5-2017). 

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(2)  The  Chairman  of  the  Appellate  Tribunal shall  be  a person  who  is  or  has  been 1***  a Judge  of  the 

Supreme Court or of a High Court. 

(3)  The  terms  and  conditions  of  service  of  the  Chairman  and  other  members  shall  be  such  as  may  be 

prescribed. 

(4) Any person aggrieved by an order of the competent authority made under section 7, sub-section (1) of 
section 9 or section 10, may, within forty-five days from the date on which the order is served on him, prefer 
an appeal to the Appellate Tribunal: 

Provided that the Appellate Tribunal may entertain any appeal after the said period of forty-five days, but 
not after sixty days, from the date aforesaid if it is satisfied that the appellant was prevented by sufficient cause 
from filing the appeal in time. 

(5) On receipt of an appeal under sub-section (4), the Appellate Tribunal may, after giving an opportunity 
to the appellant to be heard, if he so desires, and after making such further enquiry as it deems fit, confirm, 
modify or set aside the order appealed against. 

(6)  The  powers  and  functions  of  the  Appellate  Tribunal  may  be  exercised  and  discharged  by  Benches 

consisting of three members and constituted by the Chairman of the Appellate Tribunal. 

2[(6A) Notwithstanding anything contained in sub-section (6), where the Chairman considers it necessary 
so to do for the expeditious disposal of appeals under this section, he may constitute a 3[Bench with one or two 
members] and a Bench so constituted may exercise and discharge the powers and functions of the Appellate 
Tribunal: 

Provided that if the members of a Bench so constituted differ on any point or points, they shall state the 
point or points on which they differ and refer the same to a third member (to be specified by the Chairman) for 
hearing  on  such  point  or  points  and  such  point  or  points  shall  be  decided  according  to  the  opinion  of  that 
member.] 

4[(6B) In the event of the occurrence of any vacancy in the office of the Chairman by reason of his death, 
resignation  or  otherwise,  the  senior-most  member,  shall  act  as  the  Chairman  until  the  date  on  which  a  new 
Chairman, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office.  

(6C) When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, 
the senior-most member shall discharge the functions of the Chairman until the date on which the Chairman 
resumes his duties.] 

 (7) The Appellate Tribunal may regulate its own procedure. 
 2[(8)  On  application  to  the  Appellate  Tribunal  and  on  payment  of  the  prescribed  fee,  the  Tribunal  may 
allow a party to any appeal or any person authorised in this behalf by such party to inspect at any time during 
office hours, any relevant records and registers of the Tribunal and obtain a certified copy of any part thereof.] 
5[12A.  Qualifications,  terms  and  conditions  of  service  of  Chairperson,  and  Member.—
Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries 
and allowances, resignation, removal and the other terms and conditions of service of the Chairperson and 
other members of the Appellate Tribunal appointed after the commencement of  6[the Tribunals Reforms 
Act, 2021, shall be governed by the provisions of Chapter II of the said Act]: 

Provided that the Chairperson and other members appointed before the commencement of Part XIV 
of Chapter VI of the Finance Act, 2017 (7 of 2017), shall continue to be governed by the provisions of 
this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had 
not come into force.] 

13.  Notice  or  order  not  to  be  invalid  for  error  in  description.—No  notice  issued  or  served,  no 
declaration made, and no order passed, under this Act shall be deemed to be invalid by reason of any error in 

1. The words “or is qualified to be” omitted by Act 28 of 2016, s. 226 (w.e.f. 1-6-2016). 
2. Ins. by Act 55 of 1980, s. 2 (w.e.f. 1-7-1981). 
3. Subs. by Act 28 of 2016, s. 226, for “Bench of two members” (w.e.f. 1-6-2016) 
4. Ins. by s. 226, ibid. (w.e.f. 1-6-2016). 
5. Ins. by Act 7 of 2017, s. 164 (w.e.f. 26-5-2017). 
6. Subs. by Act 33 of 2021, s. 14, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed    by the 

provisions of section 184 of that Act” (w.e.f. 4-4-2021). 

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the description of the property or person mentioned therein if such property or person is identifiable from the 
description so mentioned. 

14. Bar of jurisdiction.—No order passed or declaration made under this Act shall be appealable except 
as  provided  therein  and  no  civil  court  shall  have  jurisdiction  in  respect  of  any  matter  which  the  Appellate 
Tribunal or any competent authority is empowered by or under this Act to determine, and no injunction shall 
be granted  by  any  court  or other  authority  in  respect  of  any  action  taken  or  to  be  taken in  pursuance  of  any 
power conferred by or under this Act. 

15.  Competent  authority  and  Appellate  Tribunal  to  have  powers  of  civil  court.—The  competent 
authority  and  the  Appellate  Tribunal  shall  have  all  the  powers  of  a  civil  court  while  trying  a  suit  under  the 
Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely:— 

(a) summoning and enforcing the attendance of any person and examining him on oath; 

(b) requiring the discovery and production of documents; 

(c) receiving evidence or affidavits; 

(d) requisitioning any public record or copy thereof from any court or office; 

(e) issuing commissions for examination of witnesses or documents; 

(f) any other matter which may be prescribed. 

16.  Information  to  competent  authority.—(1)  Notwithstanding  anything  contained  in  any  other 
law,  the  competent  authority  shall  have  power  to  require  any  officer  or  authority  of  the  Central 
Government or a State Government or a local authority to furnish information in relation to such persons, 
points  or  matters  as  in  the  opinion  of  the  competent  authority  will  be  useful  for,  or  relevant  to,  the 
purposes of this Act. 

(2)  Any  officer  of  the  Income-tax  Department,  the  Customs  Department  or  the  Central  Excise 
Department or any officer of enforcement appointed under the Foreign Exchange Regulation Act, 1973 
(46 of 1973), may furnish suo motu any information available with him to the competent authority if in 
the opinion of the officer such information will be useful to the competent authority for the purposes of 
this Act. 

17. Certain officers to assist competent authority and Appellate Tribunal.—For the purposes of 
any proceedings under this Act, the following officers are hereby empowered and required to assist the 
competent authority and the Appellate Tribunal, namely:— 

(a) officers of the Customs Department; 

(b) officers of the Central Excise Department; 

(c) officers of the Income-tax Department; 

(d)  officers  of 
Act, 1973 (46 of 1973); 

enforcement 

appointed  under 

the  Foreign  Exchange  Regulation                          

(e) officers of police; 

(f)  such  other  officers  of  the  Central  or  State  Government  as  are  specified  by  the  Central 

Government in this behalf by notification in the Official Gazette. 

18. Power of competent authority to require certain officers to exercise certain powers.—(1) For 
the purposes of any proceedings under this Act or the initiation of any such proceedings, the competent 
authority shall have power to cause to be conducted any inquiry, investigation or survey in respect of any 
person, place, property, assets, documents, books of account or any other relevant matters. 

(2) For the purposes referred to in sub-section (1), the competent authority may, having regard to the 
nature of the inquiry, investigation or survey, require an officer of the Income-tax Department to conduct 
or cause to be conducted such inquiry, investigation or survey. 

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(3) Any officer of the Income-tax Department who is conducting or is causing to be conducted any 
inquiry, investigation or survey required to be conducted under sub-section (2), may, for the purpose of 
such inquiry, investigation or survey, exercise any power (including the power to authorise the exercise of 
any power) which may be exercised by him for any purpose under the Income-tax Act, 1961 (43 of 1961), 
and the provisions of the said Act shall, so far as may be, apply accordingly. 

19.  Power  to  take  possession.—(1)  Where  any  property  has  been  declared  to  be  forfeited  to  the 
Central  Government  under  this  Act,  or  where  the  person  affected  has  failed  to  pay  the  fine  due  under         
sub-section (1) of  section 9  within  the  time  allowed there  for  under  sub-section  (3)  of  that  section, the 
competent authority may order the person affected as well as any other person who may be in possession 
of the property to surrender or deliver possession thereof to the competent authority or to any person duly 
authorised by it in this behalf within thirty days of the service of the order. 

(2) If any person refuses or fails to comply with an order made under sub-section (1), the competent 
authority  may  take  possession  of  the  property  and  may  for  that  purpose  use  such  force  as  may  be 
necessary. 

(3)  Notwithstanding  anything  contained  in  sub-section  (2),  the  competent  authority  may,  for  the 
purpose of taking possession of any property referred to in sub-section (1), requisition the service of any 
police officer to assist the competent authority and it shall be the duty of such officer to comply with such 
requisition. 

20.  Rectification  of  mistakes.—With  a  view  to  rectifying  any  mistakes  apparent  from  record,  the 
competent  authority  or  the  Appellate  Tribunal,  as  the  case  may  be,  may  amend  any  order  made  by  it 
within a period of one year from the date of the order: 

Provided that if any such amendment is likely to affect any person prejudicially, it shall not be made 

without giving to such person a reasonable opportunity of being heard. 

21. Findings under other laws not conclusive for proceedings under this Act.—No finding of any 
officer or authority under any other law shall be conclusive for the purposes of any proceeding under this 
Act. 

22.  Service  of  notices  and  orders.—Any  notice  or  order  issued  or  made  under  this  Act  shall  be 

served— 

(a) by tendering the notice or order or sending it by registered post to the person for whom it is 

intended or to his agent; 

(b) if the notice or order cannot be served in the manner provided in clause (a), by affixing it on a 
conspicuous  place  in  the  property  in  relation  to  which  the  notice  or  order  is  issued  or  made,  or  on 
some conspicuous part of the premises in which the person for whom it is intended is known to have 
last resided or carried on business or personally worked for gain. 

23.  Protection  of  action  taken  in  good  faith.—No  suit,  prosecution  or  other  proceeding  shall  lie 
against the Central Government or any officer of the Central or State Government for anything which is 
done, or intended to be done, in good faith, in pursuance of this Act or the rules made thereunder. 

24.  Act  to  have  overriding  effect.—The  provisions  of  this  Act  shall  have  effect  notwithstanding 

anything inconsistent therewith contained in any other law for the time being in force. 

25. Provisions of the Act not to apply to certain properties held in trust.—Nothing contained in 
this  Act  shall  apply  in  relation  to  any  property  held  by  a  trust  or  an  institution  created  or  established 
wholly for public, religious or charitable purposes if— 

(i)  such  property  has  been  so  held  by  such  trust  or  institution  from  a  date  prior  to  the 

commencement of this Act; or 

(ii) such property is wholly traceable to any property held by such trust or institution prior to the 

commencement of this Act. 

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26. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules to carry out the provisions of this Act. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a)  the  terms  and  conditions  of  service  of  the  Chairman  and  other  members  of  the  Appellate 

Tribunal under sub-section (3) of section 12; 

1[(aa) the fees which shall be paid for the inspection of the records and registers of the Appellate 

Tribunal or for obtaining a certified copy of any part thereof under sub-section (8) of section 12;] 

(b) the powers of a civil court that may be exercised by the competent authority and the Appellate 

Tribunal under clause (f) of section 15; 

(c) any other matter which has to be, or may be, prescribed. 

(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House 
of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be  comprised  in  one 
session  or  in  two  or  more  successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the rule, or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified from or be of no effect, as the case may be; so, however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously done under that rule. 

27.  Repeal  and  saving.—(1)  The  Smugglers  and  Foreign  Exchange  Manipulators  (Forfeiture  of 

Property) Ordinance, 1975 (20 of 1975), is hereby repealed. 

(2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed 

shall be deemed to have been done or taken under the corresponding provisions of this Act.  

1. Ins. by Act 55 of 1980, s. 3 (w.e.f. 1-7-1981). 

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