BNSS Section 120 Explained: A Guide to the Forfeiture of Property in Certain Cases
1. Introduction: Understanding Property Forfeiture Under the New BNSS Law
What happens when property is suspected to be linked to criminal activity under India’s new legal code? This question is at the heart of Section 120 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), a key provision that empowers courts to seize assets connected to criminal conduct.
The forfeiture of property under BNSS Section 120 represents one of the most significant mechanisms introduced under India’s reformed criminal procedure framework. It ensures that the proceeds of crime—money or property obtained through unlawful means—do not remain in the hands of offenders or their associates.
Essentially, BNSS Section 120 provides a clear legal pathway for the state to confiscate property suspected to be tied to crime, but only after a fair and structured process. This article explains how this process works—from receiving a show-cause notice to the final forfeiture order—and what every citizen should know about their rights and responsibilities.
2. The Critical First Step: Your Reply to a Show-Cause Notice
The journey toward forfeiture under BNSS Section 120 begins not in the courtroom but with an official communication called a show-cause notice. This notice, issued under Section 119 of the BNSS, is the first formal step in determining whether property is indeed connected to a criminal offence.
When someone receives such a notice, they are required to explain why their property should not be treated as proceeds of crime. The recipient must provide evidence, documents, and explanations that establish the property’s legitimate origin.
Your BNSS 120 show cause notice reply is therefore critical. It forms the foundation of your defense and influences how the court views your case later. A weak or delayed response can create an impression of non-cooperation, while a well-prepared reply—supported by financial records, ownership documents, and witness statements—can significantly strengthen your position.
A person served with a notice should respond within the stipulated time frame, usually within 30 days, and ensure that every claim is supported by credible evidence. Consulting a legal expert familiar with BNSS procedures is highly recommended at this stage.
3. The Heart of the Matter: The Court’s Hearing Process
Once the show-cause notice is replied to, the process under BNSS Section 120 moves to the next stage: a formal hearing before the court. This is where the principle of natural justice plays a vital role.
According to sub-section (1) of BNSS Section 120, the court must consider the reply, examine all evidence, and grant the person concerned a reasonable opportunity of being heard. This phrase—“reasonable opportunity of being heard”—is central to the fairness of the process. It means that every affected individual has the right to present their side of the story before any final decision is made.
Practically, this allows the person to present documents, call witnesses, and make legal submissions to prove that the property was acquired legitimately. This right protects individuals from arbitrary state action and ensures that forfeiture occurs only after due judicial consideration.
In other words, the reasonable opportunity of being heard under BNSS Section 120 safeguards procedural fairness and upholds the constitutional right to defend one’s property.
4. The 30-Day Deadline: Consequences of Non-Appearance
What happens if a person fails to respond to the show-cause notice or does not appear during the hearing? The BNSS Section 120 provides a clear answer through the concept of an ex parte finding.
An ex parte decision refers to a ruling made by the court in the absence of the opposing party. If the recipient of a notice does not submit a reply or fails to appear within the 30-day window, the court is legally permitted to proceed without their participation.
This can lead to serious consequences, as the court may presume the property to be linked with unlawful activity and order its forfeiture without hearing the owner’s defense. Hence, ignoring a notice or missing a hearing date can result in an ex parte finding under BNSS Section 120, which effectively closes the door on further argument unless successfully challenged later through appeal.
The lesson here is clear: never ignore a BNSS show-cause notice. Respond promptly, and always ensure that your presence or legal representation is recorded in court proceedings.
5. What Are the ‘Proceeds of Crime’ Under BNSS?
One of the most important aspects of BNSS Section 120 is understanding what qualifies as the proceeds of crime. Under sub-section (2), this provision addresses a common real-world problem—what if legitimate and illegitimate funds are mixed together?
For example, imagine a business owner who deposits both legal income and money obtained from illegal activities into the same bank account. In such a case, it becomes difficult to separate which part of the funds is “clean” and which is “tainted.”
Here, the court has the authority to apply reasonable judgment and identify and specify the properties or amounts to be forfeited, based on available evidence. This ensures that offenders do not escape liability simply by blending illicit assets with lawful ones.
So, what is ‘proceeds of crime’ under BNSS? It includes any property or benefit directly or indirectly derived from criminal activity. It could be cash, land, vehicles, jewelry, or even digital assets that can be traced back to an unlawful act.
6. The Final Verdict: Property Forfeiture and Its Impact
After the hearing and evaluation process, the court may issue a final order under BNSS Section 120(3). If it concludes that the property in question is indeed derived from criminal activity, it will be forfeited to the Central Government.
The section clearly states that such forfeiture occurs “free from all encumbrances.” This means that the property becomes government-owned with a clear title, unaffected by prior claims, mortgages, or liens.
In effect, all previous interests in the property—whether by banks, private lenders, or co-owners—are nullified. This provision ensures that no person or entity can continue to benefit from assets acquired through crime.
This aspect highlights the Central Government rights over forfeited property under BNSS, underscoring the government’s authority to take full possession and control once the court order is passed.
7. A Niche Rule: Forfeiture of Shares in a Company
A special feature of BNSS Section 120 lies in sub-section (4), which deals with the forfeiture of company shares. This clause has far-reaching implications for corporate entities and shareholders.
If the property to be forfeited consists of shares in a company, the law mandates that those shares be transferred to the Central Government, regardless of any conflicting provisions in the Companies Act, 2013 or the company’s internal regulations.
In simple terms, once the court orders forfeiture, the company must register the Central Government as the new shareholder in its records. No approval from the company’s board or other authorities is needed.
This makes the forfeiture of company shares under BNSS 120 a powerful tool for preventing the misuse of corporate ownership structures to conceal criminal assets.
8. How to Respond and How BNSS 120 Compares to Other Laws
When faced with a forfeiture order, individuals and entities still have legal options. Understanding how to challenge a forfeiture order under BNSS Section 120 is essential for anyone seeking relief.
The first step is to consult an experienced criminal law practitioner who understands BNSS procedures. Depending on the facts, one may file an appeal or writ petition before a higher court, challenging the validity of the forfeiture on grounds such as procedural errors, lack of evidence, or violation of the right to be heard.
Comparatively, BNSS Section 120 vs PMLA property forfeiture shows interesting distinctions. While the Prevention of Money Laundering Act (PMLA) focuses on offenses linked to money laundering and specific scheduled crimes, BNSS Section 120 has a broader scope, covering any property connected to criminal conduct under general law.
The BNSS mechanism is designed to streamline the process within the regular criminal justice framework, whereas the PMLA involves specialized authorities like the Enforcement Directorate. In essence, BNSS Section 120 integrates property forfeiture into the standard court procedure, ensuring consistency and judicial oversight.
Also read: BNSS Section 163
9. Conclusion: Key Takeaways on BNSS Section 120
The forfeiture of property under BNSS Section 120 is a major step forward in India’s fight against crime and corruption. It ensures that unlawful gains are not retained by offenders while providing fair procedural safeguards to property owners.
To summarize:
The process begins with a show-cause notice under Section 119.
Every person has the right to a reasonable opportunity of being heard before the court.
Ignoring a notice can result in an ex parte finding and automatic forfeiture.
The proceeds of crime can include mixed assets, which the court can identify and seize.
Once ordered, the property is forfeited to the Central Government free from encumbrances.
Even company shares can be forfeited under sub-section (4).
Finally, affected individuals may challenge a forfeiture order through legal appeal or review.
In conclusion, BNSS Section 120 strikes a balance between empowering the state to confiscate ill-gotten gains and preserving the rights of citizens through due process. Anyone receiving a notice or facing proceedings under this section should act swiftly, seek professional advice, and ensure that their legitimate property rights are effectively defended.