Section 105I CrPC - Fine in Lieu of Forfeiture
Section 105I of the Code of Criminal Procedure, 1973 provided an option to pay a fine instead of losing property where the source of only part of the property could not be satisfactorily established. Its corresponding provision under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) is Section 121.
Meaning of fine in lieu of forfeiture
A fine in lieu of forfeiture is an alternative to confiscation of the property. Where a court has ordered forfeiture but finds that the unexplained source concerns only part of the property, the affected person must be given the option to pay a fine equal to the market value of that part. The statutory mechanism is not a general right to replace every forfeiture order with a fine.
Section 105I CrPC - Statutory provisions explained
Sub-section (1) - Option to pay a fine
Where a court declares property forfeited to the Central Government under Section 105H CrPC, and the source of only a part of the property has not been proved to its satisfaction, the court shall make an order offering the affected person the option to pay a fine equal to the market value of that part in place of forfeiture.
Sub-section (2) - Opportunity of hearing
Before making an order imposing such a fine, the court must give the affected person a reasonable opportunity of being heard. This protects the person's opportunity to contest the basis and amount of the proposed fine.
Sub-section (3) - Revocation and release
Where the affected person pays the fine within the time allowed, the court may revoke the declaration of forfeiture under Section 105H. Upon such an order, the property stands released. Payment does not itself dispense with the need for the court's revocation order.
Section 121 BNSS - Corresponding law from 1 July 2024
Section 121(1) BNSS: If property is declared forfeited under Section 120 BNSS and only a part has an unproved source, the court shall give the affected person an option to pay a fine equal to the market value of that part.
Section 121(2) BNSS: The affected person must receive a reasonable opportunity of being heard before the fine is imposed.
Section 121(3) BNSS: If the fine is paid within the permitted time, the court may revoke the forfeiture declaration under Section 120, whereupon the property is released.
The substantive three-stage framework is carried forward from Section 105I CrPC. The principal cross-reference changes from Section 105H CrPC to Section 120 BNSS.
How the procedure operates
- The court examines the property and records its forfeiture finding under the applicable law.
- The court identifies whether the unexplained source relates to only part of the property.
- The affected person is heard before a fine is imposed.
- The court offers the statutory fine option, calculated by reference to the market value of the unexplained part.
- If the person pays within the permitted period, the court may revoke forfeiture and order release of the property.
Related forfeiture provisions
The procedure should be read together with Section 105G CrPC (notice of forfeiture), Section 105H CrPC (forfeiture findings), and Section 105J CrPC (certain transfers to be null and void). Their corresponding BNSS provisions are Sections 119, 120 and 122 respectively.
Frequently asked questions
Can a person pay a fine instead of losing the entire property?
Yes, in the specific circumstances of Section 121 BNSS or the applicable saved CrPC provision: the source of only part of the property must remain unproved, and the court must provide the statutory option.
How is the fine calculated?
The fine equals the market value of the part of the property whose source has not been satisfactorily proved, not automatically the value of the entire property.
Does payment automatically release the property?
No. On timely payment, the court may revoke the forfeiture declaration by order; the property then stands released.
Official legal references
Bharatiya Nagarik Suraksha Sanhita, 2023 - official India Code text (Sections 119-122 and 531).
India Code - Government of India legislative database (search for the Code of Criminal Procedure, 1973 and Bharatiya Nagarik Suraksha Sanhita, 2023).
This article provides general legal information. Applicability depends on the facts, relevant transitional provisions and any special statute governing forfeiture.