Section 68E: Identifying illegally acquired property

1[68E. Identifying illegally acquired property.– 2(1) Every officer 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.]]

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

2. Subs. by Act 9 of 2001, s. 34, for sub- section (1) (w.e.f. 2-10-2001).

Simplified Explanation

Section 68E of the NDPS Act outlines the procedures for tracing and identifying properties suspected to have been acquired through illegal means. This section empowers specific officers to take proactive measures for locating such properties while adhering to defined procedures and safeguards.

Key Provisions of Section 68E

1. Initiating Action for Identification (Subsection 1):
   • Officers empowered under Section 53 of the NDPS Act (e.g., officers authorized to investigate drug-related offenses) and officers-in-charge of police stations are responsible for tracing illegally acquired property.
   • These officers can act upon receipt of information and upon being satisfied that a person, covered under this chapter, holds illegally acquired property.
   • Before taking any action, the officer must record the reasons for initiating the process.

2. Steps for Tracing Property (Subsection 2):
   • The officer can conduct:
     • Inquiries: Gathering details about the suspected property and its acquisition.
     • Investigations: Probing financial or asset-related transactions linked to the person.
     • Surveys: Reviewing and inspecting persons, places, or records associated with the property.
   • These steps can target:
     • Persons: Individuals suspected of holding the property.
     • Places: Locations where the property may be situated.
     • Property and Assets: Movable, immovable, tangible, or intangible properties.
     • Documents and Books of Account: Records kept in banks, financial institutions, or other establishments.

3. Compliance with Directions (Subsection 3):
   • Any inquiry, investigation, or survey must:
     • Follow the directions or guidelines issued by the Competent Authority (appointed under Section 68D).
     • Adhere to the rules established for ensuring fairness, accuracy, and legal compliance.

Purpose of Section 68E

The section aims to:

1. Trace Illicit Gains:
   • Help authorities locate and establish the link between illegal activities and acquired assets.
2. Prevent Concealment:
   • Empower officers to act quickly to identify and document illegally acquired properties before they are hidden, transferred, or dissipated.
3. Enable Forfeiture:
   • Lay the groundwork for confiscating such properties under the provisions of Chapter VA.

Safeguards and Accountability

1. Recording Reasons:
   • Officers must document the reasons for their actions, ensuring accountability and preventing misuse of power.
2. Guidelines from Competent Authority:
   • Inquiries and investigations are regulated to ensure they are conducted fairly and consistently.

Practical Implications

1. Effective Enforcement:
   • Section 68E empowers authorities to take comprehensive actions to track illicit properties, even before initiating formal confiscation proceedings.
2. Broad Scope of Investigation:
   • Officers can probe various aspects of a person’s financial dealings, making it harder to disguise or conceal illegal assets.
3. Preventing Financial Crimes:
   • By allowing officers to act on suspicion and trace property early, the section helps prevent the conversion or laundering of illicit gains.