Indian Police Act, 1861 | Property in police custody
Section 27 of the Police Act, 1861: Sale of Unclaimed Property and Disposal of Proceeds
Section 27 deals with property that remains unclaimed after the claim period under Section 26. It permits sale under the District Magistrate's orders and specifies how unclaimed sale proceeds are dealt with.
Bare Act: Text of Section 27
(1) If no person shall within the period allowed claim such property, or the proceeds thereof, if sold, it may, if not already sold under sub-section (2) of the last preceding section, be sold under the orders of the Magistrate of the district.
(2) The sale-proceeds of property sold under the preceding sub-section and the proceeds of property sold under section 26 to which no claim has been established shall be at the disposal of the State Government.
Historical legislative notes retained
- Section 27 was substituted by Act 8 of 1895, section 8.
- The Adaptation of Indian Laws Order, 1937 substituted the words concerning disposal by Government.
- The Adaptation of Laws Order, 1950 substituted "State" for "Provincial".
The displayed text incorporates the historical substitutions for readability; the legislative notes above preserve the amendments recorded in the original page.
Meaning and scope of Section 27
The provision is part of the statutory process for handling unclaimed property. It follows Section 25, under which police take charge of unclaimed property and prepare an inventory for the District Magistrate, and Section 26, which provides for detention of property and a proclamation inviting claims.
What is unclaimed property?
For the purpose of these provisions, the expression refers to property taken into police custody for which no person has established a lawful entitlement through the applicable process. Mere absence of a claimant at the police station does not itself determine final ownership.
What is the claim period?
Under Section 26(1), the District Magistrate may issue a proclamation specifying the articles and requiring persons claiming them to establish their rights within six months from the date of the proclamation. Section 27 addresses what may happen if no claim is made within the period allowed. Any special rules or later applicable law must also be considered.
Does property become confiscated automatically?
No. Section 27(1) uses the word "may" and contemplates a sale under the orders of the Magistrate of the district. The section should not be read as authorizing a police officer to sell or appropriate property independently merely because it has remained unclaimed.
Procedure: From police custody to sale
| Stage | Relevant legal position |
|---|---|
| Police take charge | Section 25 provides for taking charge of unclaimed property and furnishing an inventory to the District Magistrate. |
| Proclamation | Section 26(1) permits the Magistrate to specify the articles and invite claims within six months. |
| Claim assessment | A claimant must establish a lawful right to the property; the relevant authority must consider the applicable evidence and procedure. |
| Sale if unclaimed | Section 27(1) permits sale under the District Magistrate's orders where no timely claim is made, subject to the statutory conditions. |
| Sale proceeds | Under Section 27(2), proceeds to which no claim has been established are at the disposal of the State Government. |
How Section 27 relates to Section 26
Section 27 expressly refers to the preceding section. The original text of Section 26(2) incorporates a historical reference to section 525 of the Code of Criminal Procedure, 1882. Older editions also refer readers to section 459 of the Code of Criminal Procedure, 1973. These are historical cross-references, not a reason to assume that the repealed procedural codes govern every new case today.
The Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) has been in force since 1 July 2024, subject to statutory savings and transitional rules. Its provisions concerning custody and disposal of property, including perishable property, should be checked alongside the relevant Police Act provision, state amendments and any special statute. The procedure can differ where property is case property, seized during an investigation, or subject to another legal regime.
What should a person claiming the property do?
- Identify the property precisely and retain the proclamation or custody reference, where available.
- Approach the authority specified in the proclamation within the prescribed period.
- Provide available proof of ownership or lawful possession, such as purchase documents, identifying marks, registration records or other reliable evidence.
- Request a written acknowledgment and keep copies of the documents submitted.
- If a claim is disputed or rejected, obtain advice on the remedy under the applicable procedural and state law.
These are practical steps, not a substitute for the procedure directed by the competent Magistrate or court.
Important legal limitations
Section 27 does not authorize arbitrary forfeiture, bypass an existing judicial order, or replace special legislation dealing with seized goods, vehicles, contraband, customs property or property connected to criminal proceedings. The powers and procedure must be read with the law actually in force in the relevant State or Union Territory.
Frequently asked questions
Can the police auction unclaimed property without the Magistrate's order?
Section 27(1) contemplates sale under the District Magistrate's orders. Any separate power under another applicable law must be identified independently.
What happens to the proceeds after an unclaimed property sale?
Section 27(2) places proceeds for which no claim has been established at the disposal of the State Government, subject to applicable law.
Is the six-month period mentioned in Section 27 itself?
The six-month period appears in Section 26(1), which Section 27 follows and refers to as the period allowed.
Official legal sources
For the authoritative and currently applicable legal text, consult the India Code legislative database, the Ministry of Home Affairs, and the relevant State Government's official legislation and gazette publications. Search for the Police Act, 1861, the Bharatiya Nagarik Suraksha Sanhita, 2023, and applicable state amendments.
Legal information only. Statutory wording and its application should be verified against official current legislation before taking action.