Section 68U: Power to take possession

1[68U. Power to take possession.– (1) Where any property has been declared to be forfeited to the Central Government under this Chapter, or where the person affected has failed to pay the fine due under sub-section (1) of section 68K within the time allowed therefor 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 authorised 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.]

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

Simplified Explanation

Section 68U outlines the powers of the competent authority and the Administrator in taking possession of property that has been declared forfeited to the Central Government under the provisions of this Chapter, or where an individual has failed to pay a fine related to illegally acquired property.


Key Provisions of Section 68U:

  1. Order for Surrender or Delivery of Property (Sub-section 1):
    • If a property has been declared forfeited to the Central Government, or if the affected person fails to pay the fine as ordered under Section 68K, the competent authority can issue an order requiring the person affected, or any other person in possession of the property, to surrender or deliver possession of the property.
    • The person must comply with this order within thirty days of receiving it.
    • The property must be delivered to the Administrator appointed under Section 68G, or to a person authorized by the Administrator.
  2. Failure to Comply with the Order (Sub-section 2):
    • If the person refuses or fails to comply with the order to surrender or deliver possession of the property, the Administrator has the authority to take possession of the property.
    • The Administrator is empowered to use force, if necessary, to take possession of the property.
  3. Requisition of Police Assistance (Sub-section 3):
    • The Administrator can request the assistance of any police officer to help take possession of the property.
    • It is the duty of the police officer to comply with the Administrator’s requisition for assistance in executing the order.

Implications of Section 68U:

  1. For the Competent Authority:
    • The competent authority has the power to take legal action to ensure that properties declared forfeited to the Central Government are handed over to the appropriate authority (the Administrator). This includes issuing orders to surrender the property.
    • The authority also has the discretion to impose a fine, and if the fine is not paid, it can take further steps to seize the property.
  2. For the Affected Person:
    • The affected person must surrender the property within thirty days of the order, or face legal action to have the property forcibly taken.
    • The affected person should be aware that non-compliance can lead to the use of force by the Administrator, and the involvement of police officers to assist in the seizure of property.
    • The failure to pay fines also leads to the forfeiture and seizure of the property, highlighting the importance of complying with the legal obligations.
  3. For the Administrator:
    • The Administrator has the power to take possession of properties that have been legally forfeited, including using force if necessary. This ensures that the government can effectively enforce forfeiture orders.
    • The Administrator can request police assistance, ensuring that law enforcement plays a role in securing possession of the property.
  4. For Law Enforcement:
    • Police officers are obligated to assist the Administrator when requested. This ensures that the power of the law is backed by police authority, providing the necessary resources to enforce forfeiture and possession orders.
  5. For Legal Professionals:
    • Legal practitioners should advise clients on the consequences of non-compliance with forfeiture orders, including the possibility of forceful seizure of property and police intervention.
    • Lawyers may also need to address any challenges related to the administrator’s actions or police involvement in the seizure process.

Example:

Suppose an individual is found to have illegally acquired property, and after a forfeiture order is passed, they fail to pay the fine. The competent authority issues an order for the individual to surrender the property within 30 days. If the individual refuses, the Administrator can then seize the property, potentially using force if necessary. The police would assist the Administrator in carrying out this action, ensuring the property is legally handed over to the government.


Section 68U provides the legal tools necessary for enforcing the forfeiture of illegally acquired property, ensuring that the Central Government can take control of such assets effectively, even if force or law enforcement assistance is required.

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