Where any 1[narcotic drug, psychotropic substance] or controlled substance is sold by a person having knowledge or reason to believe that the drug or substance is liable to confiscation under this Act, the sale proceeds thereof shall also be liable to confiscation.
1. Subs. by s. 28, ibid., for “narcotic drug or psychotropic substance” (w.e.f. 2-10-2001).
Simplified Explanation
Section 62 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) deals with the confiscation of the sale proceeds from the sale of illicit drugs or substances. It targets individuals who knowingly engage in selling narcotic drugs, psychotropic substances, or controlled substances that are subject to confiscation under the Act. Here’s a detailed breakdown of the provision:
Key Points of Section 62:
- Sale of Illicit Drugs or Substances:
- The section specifically addresses the sale of illicit drugs or substances by a person who knows or has reason to believe that the drugs or substances being sold are liable to confiscation under the NDPS Act.
- The section applies even if the seller may not have directly committed the act of trafficking or possession but has knowingly sold illicit drugs or substances.
- Confiscation of Sale Proceeds:
- The sale proceeds (i.e., the money or value gained from selling the illicit drugs or substances) derived from such illegal transactions are also liable to confiscation under this section.
- This means that if someone sells narcotic drugs or psychotropic substances knowing they are illegal, not only are the drugs or substances subject to confiscation, but any financial gains (money) from that sale are also seized by the authorities.
- Liability of Sale Proceeds:
- The provision ensures that offenders do not benefit financially from their involvement in the drug trade. Even if the drugs are sold and the money is no longer in the hands of the original seller, the proceeds are still subject to confiscation if they are traceable to the illegal sale of controlled substances.
- The provision strengthens the deterrent effect by targeting the financial rewards of trafficking or trading in illicit drugs.
- Inclusion of Controlled Substances (2001 Amendment):
- As with Section 61, this section was also amended in 2001 to substitute the term “narcotic drug or psychotropic substance” with “narcotic drug, psychotropic substance, or controlled substance.”
- This expands the scope of the provision to include not just narcotics and psychotropic substances but also other substances that may be controlled under the NDPS Act, even if they do not specifically fall under the narcotic or psychotropic categories.
Practical Example:
- If an individual knowingly sells a quantity of heroin (a narcotic drug), and the sale proceeds (the money earned from the sale) are traceable, then the authorities can confiscate the money obtained from the sale, along with any drugs or substances involved in the crime.
- If the money from the sale is transferred or hidden (for example, deposited in a bank account), the authorities can still seize those proceeds if they can establish the connection between the illicit drugs sold and the funds.
Summary:
Section 62 of the NDPS Act ensures that the proceeds from the sale of illicit drugs or substances are subject to confiscation if the person selling the drugs knows or believes that the substances are liable to be seized under the Act. This serves as a strong deterrent against trafficking by depriving offenders of the financial gains from their illegal activities and further strengthens the law’s focus on disrupting the economic foundation of the drug trade.
