Section 105H CrPC - Forfeiture of Property in Certain Cases

Section 105H of the Code of Criminal Procedure, 1973 provided for a court finding on whether property constitutes proceeds of crime and its forfeiture to the Central Government. Its corresponding provision under the Bharatiya Nagarik Suraksha Sanhita, 2023 is Section 120 BNSS.

Legal framework updated: 17 October 2026

Current law: The BNSS came into force on 1 July 2024 and replaced the CrPC, subject to transitional and savings provisions, including Section 531 BNSS. For proceedings instituted before commencement, the applicable procedural law must be checked against those provisions and the relevant facts.

What does forfeiture of property mean?

Forfeiture is the legal consequence by which property determined by a competent court to be proceeds of crime vests in the Central Government. In this chapter, proceeds of crime generally refers to property derived or obtained, directly or indirectly, from criminal activity, within the applicable statutory definitions. The court must follow the notice, hearing and determination procedure before declaring forfeiture.

Section 105H CrPC - Explanation of all four subsections

Subsection (1): Notice, hearing and judicial finding

After considering the explanation submitted in response to a show-cause notice under Section 105G CrPC, the evidence and other available material, the court must provide a reasonable opportunity of hearing to the affected person. If property is held through another person, that person must also be given an opportunity to be heard. The court then records whether all or any of the specified properties are proceeds of crime.

Ex parte proceedings: If the affected person or relevant holder fails to appear or present a case within the 30-day period specified in the show-cause notice, the court may determine the matter in their absence on the available evidence. Nonappearance does not dispense with the requirement to evaluate the evidence.

Subsection (2): Identification of tainted property

If the court finds that some properties are proceeds of crime but cannot identify precisely which ones, it may identify the properties that, to the best of its judgment, constitute proceeds of crime and record its finding accordingly.

Subsection (3): Forfeiture free from encumbrances

Once the court finds that property is proceeds of crime under this section, that property stands forfeited to the Central Government free from all encumbrances. This means that interests or charges affecting the property do not continue to burden the forfeited property under the statutory rule, subject to any applicable legal challenge or other governing law.

Subsection (4): Forfeiture of company shares

If company shares are forfeited, the company must register the Central Government as the transferee notwithstanding its articles of association or the company law provision referred to in the applicable statute. The historical CrPC text refers to the Companies Act, 1956; the corresponding Section 120(4) BNSS refers to the Companies Act, 2013.

Section 120 BNSS - Current corresponding provision

Section 120 of the Bharatiya Nagarik Suraksha Sanhita, 2023 retains the central structure of former Section 105H CrPC. It refers to a show-cause notice under Section 119 BNSS, followed by a reasonable opportunity of hearing, judicial determination, forfeiture of established proceeds of crime and registration of forfeited company shares in the Central Government's name.

Subject	CrPC, 1973	BNSS, 2023
Notice of forfeiture	Section 105G	Section 119
Forfeiture in certain cases	Section 105H	Section 120
Fine instead of forfeiture	Section 105I	Section 121
Transfers treated as void	Section 105J	Section 122

How the forfeiture procedure works

Identification and inquiry: The relevant authority identifies property suspected to represent proceeds of crime under the applicable chapter.
Show-cause notice: The court issues a notice under Section 119 BNSS (formerly Section 105G CrPC), ordinarily allowing 30 days to explain the source of acquisition and provide supporting evidence.
Opportunity of hearing: The affected person and, where applicable, the person holding the property on their behalf may present explanations and evidence.
Reasoned determination: The court examines the material and records its finding under Section 120 BNSS.
Consequences: Property found to be proceeds of crime stands forfeited to the Central Government. Other statutory provisions may govern management, fines or transfers.

Rights and safeguards of the affected person

The person receiving a notice should examine the property description, allegations and material relied on; collect acquisition deeds, bank statements, income records and other evidence showing lawful sources; respond within the specified period; and attend the hearing. Where the facts warrant it, the person may seek appropriate judicial relief against an unlawful notice, procedural irregularity or forfeiture order. The availability and forum of any remedy depend on the case and applicable law.

Section 105F CrPC (Section 118 BNSS) deals with management of seized or forfeited property. Section 105I CrPC (Section 121 BNSS) provides a fine-in-lieu mechanism where only part of the property's source remains unproved, subject to its conditions. Section 105J CrPC (Section 122 BNSS) addresses certain transfers following attachment orders or forfeiture notices.

Official statutory references

India Code - official repository of central legislation (search for Act 46 of 2023, Bharatiya Nagarik Suraksha Sanhita).
Bureau of Police Research and Development - BNSS statutory text and corresponding CrPC references (PDF).
Ministry of Home Affairs - criminal law notifications and updates.

Note: This article is general legal information, not advice on any particular forfeiture proceeding. Always consult the applicable statute, notifications and case-specific court orders.