Section 68C: Prohibition of holding illegally acquired property

1[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:

2[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 authorisation 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.]]

1. Ins. by Act 2 of 1989, s. 19 (w.e.f. 29-5-1989)

2. Subs. by Act 9 of 2001, s. 33, for “the proviso” (w.e.f. 2-10-2001).

Simplified Explanation

Section 68C of the NDPS Act explicitly prohibits individuals to whom this chapter applies from holding any illegally acquired property. This provision ensures that such properties, derived from or linked to illicit trafficking of narcotics and psychotropic substances, are confiscated by the government.

Key Provisions of Section 68C

1. Prohibition on Holding Illegally Acquired Property (Subsection 1):
   • From the date of the commencement of Chapter VA:
     • It is unlawful for individuals to whom this chapter applies to hold any property deemed to be illegally acquired.
     • This prohibition applies both:
       • Directly: When the property is held in their name.
       • Indirectly: When the property is held by another person on their behalf.

2. Forfeiture of Illegally Acquired Property (Subsection 2):
   • If an individual continues to hold such property in violation of Subsection (1), the property becomes liable for forfeiture to the Central Government.
   • The forfeiture is carried out as per the procedures outlined in Chapter VA.

3. Proviso – Time Limit for Forfeiture:
   • Property acquired before a specific period cannot be forfeited under this section. The key details are:
     • The property must have been acquired six years or more before:
       • The person’s arrest, or
       • The issuance of a warrant or authorization of arrest, or
       • The issuance of a detention order.
     • This safeguard ensures that only recently acquired illegal properties are targeted.

Purpose and Rationale

The objective of Section 68C is to:

1. Break the financial backbone of illicit drug trafficking networks by confiscating properties obtained through illegal means.
2. Prevent concealment: Ensures offenders cannot hold such properties in their own name or through intermediaries.
3. Enforce accountability: Targets those directly or indirectly involved in drug-related offenses, ensuring they cannot benefit financially from such activities.

Important Points to Note

• Scope of Applicability:
  This section applies to individuals covered under Section 68A, which includes offenders, their relatives, associates, and others who might possess or hold such property.
• Forfeiture Mechanism:
  Illegally acquired property can be identified, traced, and seized through the mechanisms defined in other sections of Chapter VA (e.g., Section 68E for notices, Section 68F for freezing orders).
• Safeguards:
  The six-year limitation period ensures that individuals are not penalized for older acquisitions, thus balancing enforcement with fairness.

Practical Implications

• Deterrent Effect:
  This section discourages offenders from continuing to possess or hide assets obtained through drug-related crimes.
• Targeted Enforcement:
  The focus remains on recent acquisitions, simplifying investigations and preventing prolonged scrutiny into historical transactions.
• Streamlined Recovery Process:
  Authorities can effectively seize and forfeit illegally acquired properties, aiding in dismantling criminal enterprises.