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NDPS ACT 1985

 

CHAPTER VA

FORFEITURE OF PROPERTY DERIVED FROM,

OR USED IN ILLICIT TRAFFIC

68A.  Application

  1. The provisions of this Chapter shall apply only to persons specified in sub-section (2)
  2. The persons referred to in sub-section (1) are the following, namely :-
    a. every person who has been convicted of an offence punishable under this Act with imprisonment for a term of 2[ten] years or more;
    b. every person who has been convicted of a similar offence by competent court of criminal jurisdiction outside India;
    c. every person in respect of whom an order of detention has been made under the Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988 (46 of 1988), or under the Jammu and Kashmir Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988 (J & K Act XXIII of 1988):
      Provided that such order of detention has not been revoked on the report of the Advisory Board constituted under the said Acts or such order of detention has not been set aside by a court of competent jurisdiction;

    1[(cc)  every person who has been arrested or against whom a warrant or authorization of arrest has been issued for the commission of any offence punishable under this Act with imprisonment for a terms of ten years or  more, and every person who has been arrested or against whom a warrant or authorization of arrest has been issued for the commission of a similar offence under any corresponding law of any other country.]
    d. every person who is a relative of a person referred to in clause (a) or clause (b) or clause (c)  1[or clause (cc)];
    e. every associate of a person referred to in clause (a) or clause (b) or clause (c) 1[or clause (cc)];
    f. 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) or clause (c) 1[or clause (cc)]; 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.

68B.   Definitions.- In this Chapter, unless the context otherwise requires,-

  1. “Appellate Tribunal” means the Appellate Tribunal for Forfeited Property constituted under section 68N;
  2. “associate” in relation to a person whose property is liable to be forfeited under this Chapter, means-
    (i) any individual who had been or is residing in the residential premises (including out-houses) 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 person, 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 or persons, body of individuals, partnership firm or private company referred to in sub-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 any association of person, body of individuals, partnership firm or private company referred to in sub-clause (iii);
    (vi) the trustee of any trust, where.-
    1. the trust has been created by such person; or
    2. 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 contribution is made, to not less than twenty per cent. Of the value of the assets of the trust on that date;
    (viii)  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;
       
  3. “competent authority” means an officer of the Central Government authorized by it under section 68D;
  4. “concealment” means the concealment or disguise of the nature, source, disposition, movement or ownership of property and includes the movement or conversion of such property by electronic transmission or by any other means;
  5. “freezing” means temporarily prohibiting the transfer, conversion, disposition, or movement of property by an order issued under section 68F;
  6. “identifying” includes establishment of proof that the property was derived from, or used in, the illicit traffic;
  7. “illegally acquired property”, in relation to any person to whom this Chapter applies, means,-
    1. any property acquired by such person, whether before or after the commencement of this Chapter, wholly or partly out of or by means of any income, earnings or assets derived or obtained from or attributable to 1[the contravention of any provisions of this Act]; or
    2. any property acquired by such person, whether before or after the commencement of this Chapter, for a consideration, or by any means wholly or partly traceable to any property referred to in sub-clause (i) or the income or earning from such property,and includes-
    1. 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;

    2. any property  acquired by such person, whether before or after the commencement of this Chapter, for a consideration, or by any means, wholly or partly traceable  to any property falling under item (A), or the income or earnings therefrom;
  8. property” means property and assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible and deeds and &nbinstruments evidencing title to, or interest in, such property or assets, derived from, or used in the illicit traffic;
  9. "relative” means—
  10. (1)    spouse of the person;
    (2)    brother or sister of the person;
    (3)    brother or sister of the spouse of the person;
    (4)    any lineal ascendant or descendant of the person;
    (5)    any lineal ascendant or descendant of the spouse of the person;
    (6)   spouse of a person referred to in sub-clause (2), sub-clause (3), sub-clause (4), or sub-clause (5);
    (7)    any lineal descendant of a person referred to tin sub-clause (2) or sub-clause (3);

  11. "tracing” means determining the nature, source, disposition, movement, title or ownership of property;
  12. "trust” includes any other legal obligation.
 
68C.  Prohibition of holding illegally acquired property.—(1)  As from the commencement of this Chapter, it shall not be lawful for any person to whom this Chapter 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 Chapter:
  1[Provided that no property shall be forfeited under this Chapter if such property was acquired, by a person to whom this Act applies, before a period of six years from the date he was arrested or against whom a warrant or authorization of arrest has been issued for the commission of an offence punishable under this Act or from the date the order or detention was issued, as the case may be.]
68D.  Competent authority.—(1)    The Central Government may, by order published in the Official Gazette, authorize any Collector of Customs or Collector of Central Excise or Commissioner of Income-tax or any other officer of the Central Government of equivalent rank to perform the functions of the competent authority under this Chapter.
(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.
68E. Identifying illegally acquired property.—2[(1)  Every offence empowered under section 53 and every officer-in-charge of a police station shall, or receipt of information is satisfied that any person to whom this Chapter applies holds any illegally acquired property, he may, after recording reasons for  doing so, proceed to take all steps necessary for tracing and identifying such property.]
(2)    The steps referred to in sub-section (1) may include any inquiry, investigation or survey in respect of any person, place, property, assets, documents, books of account in any bank or public financial institution or any other relevant matters.
(3)  Any inquiry, investigation or survey referred to in sub-section (2) shall be carried out by an officer mentioned in sub-section (1) in accordance with such directions or guidelines as the competent authority may make or issue in this behalf.
68F.    Seizure or freezing of illegally acquired property.—(1)    Where any officer conducting an inquiry or investigation under section 68E has reason to believe that any property in relation to which such inquiry or investigation is being conducted is an illegally acquired property and such property is likely to be concealed, transferred or dealt with in any manner which will result  in frustrating any proceeding relating to forfeiture of such property under this Chapter, he may make an order for seizing such property and where it is not practicable to seize such property, he may make an order 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 competent authority and a copy of such order shall be served on the person concerned:
  Provided  that the competent authority shall be duly informed of any order made under this sub-section and a copy of such an order shall be sent to the competent authority within forty-eight hours of its being made.
(2)  Any order made under sub-section (1) shall have no effect unless the said order is confirmed by an order of the competent authority within a period of thirty days of its being made.

Explanation.—For the purposes of this section, “transfer of property” means any disposition, conveyance, assignment, settlement, delivery, payment or other alienation of property and, without limiting the generality of the foregoing includes—

 
  1. the creation of a trust in property;
  2. the grant or creation of any lease, mortgage, charge, easement, licence, power, partnership or interest in property;
  1. the exercise of a power of appointment of property vested in any person, not the owner of the property, to determine its disposition in favour of any person other than the donee of the power; and
  2. any transaction entered into by any person with intent thereby to diminish directly or indirectly the value of his own property and to increase the value of the property of any other person.
 
68G.  Management of properties seized or forfeited under this Chapter.—(1) The Central Government may, by order published in the Official Gazette, appoint as many of its officers (not below the rank of a Joint Secretary to the Government) as it thinks fit, to perform the functions of an Administrator.

(2) The administrator appointed under sub-section (1) shall receive and manage the property in relation to which an order has been made under sub-section (1) of section 68F or under section 68-I in such manner and subject to such conditions as may be prescribed.
(3)  The Administrator shall also take such measures, as the Central Government may direct, to dispose of the property which is forfeited to the Central Government.
68H. Notice of forfeiture of property.—(1)    If, having regard to the value of the properties held by any person to whom this Chapter 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 a report from any officer making an investigation under section 68E 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 a period of thirty days specified in the notice 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 Chapter 
(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:
  1[Provided that no notice for forfeiture shall be served upon any person referred to in clause (cc) of sub-section (2) of section 68A or relative of a person referred to in that clause or associate of a person referred to in that clause or holder of any property which was at any time previously held by a person referred to in that clause.]
68-I.  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 68H, 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 
  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 competent authority or represent his case before it within a period of thirty days specified in the show cause notice, the competent authority may proceed to record a finding under this sub-section ex parte on the basis of evidence available  before it.
(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 identify 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 Chapter stand forfeited to the Central Government free from all encumbrances:
  1[Provided that no illegally acquired property of any person who is referred to in clause (cc) of sub-section (2) of section 68A or relative of a person referred to in that clause or associate of a person referred to in that clause or holder of any property which was at any time previously held by a person referred to in the clause shall stand forfeited.]
(4) Where any shares in a company stand forfeited to the Central Government under this Chapter, 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.
 
68J. Burden of proof.—In any proceedings under this Chapter, the burden of proving that any property specified in the notice served under section 68H is not illegally acquired property shall be on the person affected.
68K.  Fine in lieu of forfeiture.—(1)    Where the competent authority makes a declaration that any property stands forfeited to the Central Government under section 68-I and it is a case where the source of only a part of the illegally acquired property 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 the market value of such part.
(2) Before making an order imposing a find 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 68-I and thereupon such property shall stand released.

68L. 

Procedure in relation to certain trust properties.—In the case of any person referred to in sub-clause (vi) of clause (b) of section 68B, 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 a period of thirty days specified in the notice, to explain the source of money or other assets out of or by means of which such property was acquired or, as the case may be, the source of 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 68H and all the other provisions of this Chapter 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.
68M. Certain transfers to be null and void.--   Where after the making of an order under sub-section (1) of section 68F or the issue of notice under section 68H or under section 68L, any property referred to in the said order or notice is transferred by any mode whatsoever such transfer shall, for the purposes of the proceedings under the Chapter, be ignored and if such property is subsequently forfeited to the Central Government under section 68-I, then, the transfer of such property shall be deemed to be null and void.
68N. Constitution of Appellate Tribunal.--   (1)  The Central Government may, by notification in the Official  Gazette, constitute an Appellate Tribunal to be called the Appellate Tribunal for Forfeited Property consisting of a Chairman and such number of other members (being officers of the Central Government not below the rank of Joint Secretary to the Government) as the Central Government thinks fit, to be appointed by that Government for hearing appeals against the orders made under section 68F, section 68-I, sub-section (1) of section 68K or section 68L. 
(2) The Chairman of the Appellate Tribunal shall be a person who is or has been or is qualified to be 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.
68-O. Appeals—(1)  1[ Any officer referred to in sub-section (1) of section 68E or any person aggrieved by an order of the competent authority] made under section 68F, section 68-I, sub-section (I) of section 68K or section 68L, may, within 45 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 an 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.
(2)  On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving an opportunity to the appellant to be heard, if he so desires, and after making such further inquiry as it deems fit, confirm or set aside the order appealed against.
(3)   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.
(4)  Notwithstanding anything contained in sub-section (3), where the Chairman considers it necessary so to do for the expeditious disposal of appeals under this section, he may constitute a Bench of 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 of such point or points and such point or points shall be decided according to the opinion of that members.
(5)  The Appellate Tribunal may regulate its own procedure.
(6)  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 authorized 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.
 
68P.  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 Chapter shall be deemed to be invalid by reason of any error in the description of the property or person mentioned therein if such property or person is identifiable from the description so mentioned.
68Q.  Bar of jurisdiction.—No order passed or declaration made under this Chapter 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 Chapter 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 Chapter.
68R.  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 on affidavits;

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

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

(c)       any other matter which may be prescribed.

68S. 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 Chapter.
(2)   Every officer referred to in section 68T 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 Chapter.
68T.  Certain officers to assist Administrator, competent authority and Appellate Tribunal.—For the purposes of any proceedings under this Chapter, the following officers are hereby empowered and required to assist the Administrator appointed under section 68G, competent authority and the Appellate Tribunal, namely:-

(a)     officers of the Narcotics Control Bureau;
(b)     officers of the Customs Department;
(c)     officers of the Central Excise Department;
(d)     officers of the Income-tax Department;
(c)     officers of Enforcement appointed under the Foreign Exchange Regulation Act, 1973 (46 of 1973);
(d)     officers of Police;
(e)     officers of the Narcotics Department;
(f)      officers of the Central Economic Intelligence Bureau;
(g)     officers of the Directorate of Revenue Intelligence;
(h)     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.

 
68U. Power to take possession.—(1)     Where any property has been declared to be forfeited to the Central Government under this Cahpter, or where the person affected has failed to pay the fine due under sub-section (1) of section 68K within the time allowed therefore 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 Administrator appointed under section 68G or to any person duly authorized by him 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 Administrator 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 Administrator 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 him and it shall be the duty of such officer to comply with such requisition.
68V.  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.
68W. Findings under other laws not conclusive for proceedings under this Chapter.—No finding of any officer or authority under any other law shall be conclusive for the purposes of any proceedings under this Chapter.
68X. Service of notices and order.—Any notice or order issued or made under this Chapter shall be served—

  1. by tendering the notice or order or sending it by registered post to the person for whom it is intended or to his agent;

  2. if the notice or order cannot be served in the manner provided to clause (a), by affixing it on a conspicuous place in the property to relation to which the notice 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.
68Y. Punishment for acquiring property in relation to which proceedings have been taken, under this Chapter.—Any person who knowingly acquired, by any mode whatsoever, any property in relation to which proceedings are pending under this Chapter shall be punishable with imprisonment for a term which may extend to five years and with fine which may extend to fifty thousand rupees.]
1[68Z. Release of property in certain cases.—(1)   Where the detention order of a detenu is set aside or withdrawn, properties seized or frozen under this Chapter shall stand released.
(2)   Where any person referred to in clause (a) or clause (b) or clause (cc) of sub-section (2) of section 68A has been acquitted or discharged from the charges under this Act or any other corresponding law of any other country and the acquittal was not appealed against or when appealed against, the appeal was disposed of as a consequence of which such property could not be forfeited or warrant of arrest or authorization of arrest issued against such person has been withdrawn, then, property seized or frozen under this Chapter shall stand released.]

 
   
 
THE ILLEGALLY ACQUIRED PROPERTY

(RECEIPT, MANAGEMENT AND

DISPOSAL) RULES, 1989

In exercise of the powers conferred by section 76 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985), the Central Government hereby makes the following rules, namely:-

  CHAPTER  I

PRELIMINARY

  1.       Short title and commencement.—
(1)    These rules may be called the Illegally Acquired Property (Receipt, Management and Disposal) Rules, 1989.
(2)     They shall come into force on the date of their publication in the Official Gazette. 2.Definitions.—In these rules, unless the context otherwise requires,-

(a)      “Act” means the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985);
(b)     “Administrator” means any officer appointed by the Central Government under sub-section (1) of section 68G of the Act;
(c)     “Form” means form annexed to these rules;
(d)     “Fund” means the National Fund for Control of Drug Abuse, constituted under sub-section (1) of section 7A of the Act;
(e)      “godown” means a godown for storage of property received under sub-section

  (2) of section 68G of the Act
   
 
CHAPTER   II

ASSISTANCE TO THE ADMINISTRATORS
    3.       Assistance to the Administrators.—The Central Government may provide from time to time such members of staff and other persons as it thinks fit to assist the            Administrator in exercise of his powers and performance of duties under these rules.

   
 
CHAPTER    III

DESIGNATION OF GODOWNS, RECEIPT AND MANAGEMENT OF PROPERTY
  4.       Designation of godowns.—(1) The Administrator shall designate as many godowns as may be necessary for the storage of property mentioned in the orders made under sub-section (1) of section 68F or sub-section (3) of section 68-I of the Act.

   
(2) The Administrator shall select godowns referred to in sub-rule (1), keeping in view the security of the premises, storage capacity, nature of property and other relevant factors.
(3)  Each designated godown shall have a godown keeper and a godown-in-charge to assist the Administrator.
5.    Proper accounting of properties.—The Administrator shall, at the time of receiving the properties, ensure proper identification of such property with reference to itsparticulars mentioned in the order made under sub-section (1) of section 68F or sub-section (3) of section 68-I of the Act, as the case may be.
6.  Godown register.—The Administrator shall cause a register in Form I for recording entries in respect of property other than the properties referred to in rule 7 to be maintained.
7. Godown register for valuables.— The Administrator shall cause a register in Form II for recording entries in respect of property, namely, gold and gold jewellery, diamonds (including rough and uncut diamonds), precious and semi-precious stones other than diamond and wrist watches (hereinafter called ‘valuables’) to be maintained.
8.     Storage of property.—(1)  The Administrator shall ensure that the packages containing valuables are kept in the godown in an iron safe and vault, under double lock system, one key remaining with the godown-keeper and the other to be retained by the godown-in-charge.
(2) Where, for any valid reason, it is found that the packages containing valuables may not be kept in godown, such packages shall be kept in lockers obtained exclusively for this purpose, either with any branch of the Reserve Bank of India or of any nationalized bank.
(4)     The packages referred to in sub-rules (1) and (2) shall be stored systematically casewise, serialwise, yearwise and with proper identification marks to facilitate re-check and inspection.
9. Management of land and building.—The Administrator may authorize any officer referred to in section 68T of the Act to take possession of vacant land or building in respect of which-

(i)  an order of seizure of freezing of such land or building has been made under sub-section (1) of section 68F of the Act; or
(ii) an order for forfeiture of such land or building has been made under sub-section (1) of section 80-I of the Act.
10.  Occupation of land or building.—(1)     Where any property in the nature of land or building is in possession of a lessee or a tenant and against such property and order under sub-section (1) of section 68F of the Act has been made, the Administrator may allow the lease or tenant to continue in occupation of such land or building in accordance with such terms and conditions which existed on the date of passing an order under sub-section (1) of section 68F of the Act.
(2)  The income derived from such property shall be kept with the Administrator until such time the competent authority declares the property forfeited under sub-section (3)     of section 68-I.
(3)    Where any property is declared not liable to be forfeited under the Act, the Administrator shall, within reasonable time, return to the person such property and the income derived therefrom after deducting such expenses if any, which were incurred on the maintenance and management of the property.
11.  Record of land or building.—The Administrator shall maintain a record of land or building in Form III.
12.   Storage of property other than valuables.—(1)  Movable property other than valuables shall be stored in almirahs and racks.
(2) Each almirah and rack shall have a stock-card indicating the case number and full description of the property.
13. Placement of stock-cards.—The godown-in-charge shall ensure that the racks or almirahs or any other thing used for storage of property, display stock-cards indicating the case  number and full description of the property stored.
14. Opening and re-sealing of the packages.—(1)   Where any package is to be opened for any reason, the same shall be opened in the presence of the owner and the concerned godown-in-charge after obtaining the order of the Administrator.
(2) The packages shall be re-sealed immediately after the purpose, for which such packages were opened, is fulfilled in the presence of the owner and the concerned godown-in-charge.
(3) At the time of re-sealing, the owner, and the concerned godown-in-charge, shall affix their seals.
15.   Maintenance of seized/confiscated conveyances.—Conveyances, such as aircrafts, vessels, motor vehicles and any other mode of conveyance shall be properly maintained by the godown-in-charge.
 
   
 
CHAPTER    IV


DISPOSAL OF PROPERTY
   
 16.  Disposal of livestocks, perishables, etc.—Subject to the sale proceeds being credited to the Fund under Section 7A of the Act, the Administrator shall dispose of the livestock and property which is perishable in nature or prone to decay in the manner as he deems fit.
17. Disposal of valuables.—Subject to the sale proceeds being credited to the Fund under Section 7A of the Act, the Administrator shall dispose of the valuables mentioned below in the following manners, namely:-
 
  1. Gold, gold jewellery, silver and silver jewellery.—The valuables, namely, gold, gold jeweler, silver and silver jewellery shall be deposited in the Government of India Mints which shall credit the value of such property to the Central Government.
  2. Diamonds.—Rough and uncut diamonds shall be sold either by auction or tender to import licence holders against debit of their licences.  Cut and polished diamonds shall be sold by auction or tender with the specific condition that such diamonds shall be exported.
  3. Precious and semi-precious stones other than diamonds.—
    (i)  Rough and uncut precious and semi-precious stones other than diamonds shall be sold by auction or tender to holders of import licences against debit of       their licences in the internal market.
    (ii)  Cut and polished precious and semi-precious stones, other than diamonds, shall be sold internally, by auction or by tender.
18.  Disposal of currency.—(1)  Indian and Foreign currency shall be deposited with the Reserve Bank of India or any Nationalised Bank.
(2) The amount so deposited shall be credited to the Fund constituted under this Act.
19. Disposal of the property.—Property other than those mentioned in rules 16 to 18 shall be disposed of by public auction.

20. Disposal of land or building.—Subject to the relevant provisions of any law relating to the acquisition or disposal of immovable property and also subject to the sale proceeds being credited to the Fund under section 7A of the Act, land or building shall be disposed of by tender or by public auction.
21.  Disposal of conveyances.—Conveyances, such as aircrafts, vessels, vehicles and other mode conveyance shall be sold by public auction of or by tender.

22.  Furnishing Reports and Returns.—The Administrator shall furnish a quarterly statement to the Narcotics Control Bureau indicating the value of the property received and disposed of and the closing balance of all properties kept in the godowns and banks.
 
 
CHAPTER  V

MISCELLANEOUS
   
23.  Periodical Reports.—The godowns-in-charge shall submit, every month, a report to the Administrator of the property received or disposed of during the period.
24. Periodical inspection.—The Administrator with a view to ensuring safety, security, proper accounting and management of all properties in the godowns, conduct physical inspection and verification with the help of such officers as he thinks fit.
25. Record of receipt and disposal.—The Administrator shall maintain a record of receipt and disposal of all properties received and disposed of under these rules. He shall also maintain an account of all income received and expenditure incurred on receipt, management and disposal of such  property.
 


FORM I

(See rule 6)

GODOWN REGISTER

1.       Godown entry Sl. No.

2.       Narcotic Drugs and Psychotropic Substances Crime No.

3.       Description of property in the sealed packages/containers.

4.       No. of packages/ containers.

5.       Quantity (packed/containerwise).

6.       Name(s) and address(es) of accused.

7.       Name with official designation and address of seizing/depositing officer.

8.       Facsimile of the seal put on the packages/containers by the seizing officer/depositing officer.

9.       Date and time of deposit.

10.     Particulars of exit and re-entry for exhibiting to competent authority/Tribunal.

11.     Date and time of removal for disposal.

12.     Disposal particulars.

13.     Certificate of disposal including price payment particulars and credit to the Fund.

14.     Remarks of the Inspecting Officer(s).

FORM II

(See rule 7)

GODOWN REGISTER FOR VALUABLE

1.       Godown entry Sl. No.

2.       Narcotic Drugs and Psychotropic Substances Crime No.

3.       Description of the valuables in packages/containers.

4.       No. of packages/containers (itemwise).

5.       Condition of seal at the time of entry.

6.       Quantity (package/containerwise).

7.       Name(s) and address(es) of accused)

8.       Name with official designation and address of seizing/depositing officer.

9.       Facsimile of the seal put on the packages/containers by the seizing/depositing officer.

10.     Date and time of deposit.

11.     Particulars of exit and re-entry for exhibiting to competent authority/Tribunal.

12.     Date and time of removal for disposal.

13.     Disposal particulars.

14.     Certificate of disposal including price payment particulars and credit to the National Fund for Control of Drug Abuse.

15.     Remarks of the Inspecting Officer(s).

*Valuable will include: (1) Precious and semi-precious stones; (2) Gold and articles of gold; (3) Jewellery; (4) Silver and articles of silver; and (5) Watches.

FORM III

(See rule 11)

RECORD FOR LAND AND BUILDING

__________________________________________________________________

Sl.  Crime No.  Particulars   Location     Description as      Area        Value   Annual     Remarks

No.              of the last              per Municipal      (in case                income           

                   Owner(s)                  revenue record     of land)

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