Power to forfeit funds of an unlawful association

(1) Where the Government is satisfied, after such inquiry as it may think fit, that any monies, securities or other assets are being used or are intended to be used for the purpose of an unlawful association, the Government may, by order in writing, declare such monies, securities or other assets to whomsoever they belong to be forfeited to Government. (2) A copy of an order under sub-section (1) may be served on the person having custody of the monies, securities or other assets and on the service of such copy such person shall pay or deliver the monies, securities or other assets to the order of the Government: Provided that in the case of monies or securities, a copy of the order may be endorsed for execution to such officer as the Government may select, and such officer shall have power to enter upon and search for such monies and securities in any premises where they may reasonably be suspected to be, and to seize the same. (3) Before an order of forfeiture is made under sub-section (1) the Government shall give a written notice to the person, if any in whose custody the monies, securities or other assets are found of its intention to forfeit and such person may make a representation to the Government against the proposed order of forfeiture within fifteen days of the receipt of the notice. The Government shall after considering the representation, if any, received from the affected person pass such orders as they deem fit. (4) Where the Government has reason to believe that any person has custody of any monies, securities or other assets which are being used or are intended to be used for the purpose of an unlawful association, the Government may, by order in writing, prohibit such person from paying, delivering, transferring or otherwise dealing in any manner whatsoever with the same, save in accordance with the written orders of the Government. A copy of such order shall be served upon the person to whom it is directed. (5) The Government may endorse a copy of an order under sub-section (4) for investigation to any officer it may select, and such copy shall be deemed to be warrant whereunder such officer may enter upon any premises of the person to whom the order is directed, examine the books of such person of any officer, agent or servant of such person, search for monies and securities and make inquiries from such person touching the origin of and dealings in any monies, securities or other assets which the investigating officer may suspect are being used or are intended to be used for the purpose of an unlawful association. (6) Central Act 2 0f 1974 - A copy of an order under this section may be served in the manner provided in the Code of Criminal Procedure, 1973 for the service of summons, or where the person to be served is a Corporation, Company, Bank or Association of persons, it may be served on any secretary, director or other officer or person concerned with the management thereof, or by leaving it or sending it by post addressed to the Corporation, Company, Bank or Association at its registered office, or where there is no registered office, at the place where it carries on business. Where the Government are satisfied that in the circumstances it is not reasonably practicable to follow such procedure, they may cause the order to be published in any local newspaper. (7) Where an order of forfeiture is made under sub-section (1) in respect of any monies, securities or other assets in respect of which a prohibitory order has been made under sub-section (4), such order of forfeiture shall have effect from the date of the prohibitory order, and the person to whom the prohibitory order was directed shall pay or deliver the whole of the monies, securities, or other assets forfeited, to the order of the Government. (8) Where any person liable under this section to pay or deliver any monies, securities or other assets to the order of the Government refuses or fails to comply with any direction of the Government in this behalf, the Government may recover from such person, as arrears of land revenue or as a fine, the amount of such monies or other financial assets or the market value of such securities. (9) In this section, ‘security’ includes a document whereby any person acknowledges that he is under a legal liability to pay money, or whereunder any person obtains a legal right to the payment of money and the market value of any security means the value as fixed by any officer or person deputed by the Government in this behalf. (10) Except so far as is necessary for the purposes of any proceeding under this section, no information obtained in the course of any investigation made under sub-section (5) shall be divulged by any officer of Government without the consent of the Government. (11) The Government may, by order, delegate their powers under this section to any officer not below the rank of a District Collector and likewise withdraw the same. (12) The Government may, in their discretion at any time, either suo motu or on an application made by the aggrieved party, call for and examine the records of any order passed by the District Collector under sub-section (11) for the purpose of satisfying themselves as to the legality, regularity or propriety thereof and pass such orders in reference thereto as they may deem fit: Provided that no order under this sub-section shall be passed by the Government unless the party likely to be affected thereby has had an opportunity of making a representation. (6) Central Act 2 0f 1974 - A copy of an order under this section may be served in the manner provided in the Code of Criminal Procedure, 1973 for the service of summons, or where the person to be served is a Corporation, Company, Bank or Association of persons, it may be served on any secretary, director or other officer or person concerned with the management thereof, or by leaving it or sending it by post addressed to the Corporation, Company, Bank or Association at its registered office, or where there is no registered office, at the place where it carries on business. Where the Government are satisfied that in the circumstances it is not reasonably practicable to follow such procedure, they may cause the order to be published in any local newspaper. (7) Where an order of forfeiture is made under sub-section (1) in respect of any monies, securities or other assets in respect of which a prohibitory order has been made under sub-section (4), such order of forfeiture shall have effect from the date of the prohibitory order, and the person to whom the prohibitory order was directed shall pay or deliver the whole of the monies, securities, or other assets forfeited, to the order of the Government. (8) Where any person liable under this section to pay or deliver any monies, securities or other assets to the order of the Government refuses or fails to comply with any direction of the Government in this behalf, the Government may recover from such person, as arrears of land revenue or as a fine, the amount of such monies or other financial assets or the market value of such securities. (9) In this section, ‘security’ includes a document whereby any person acknowledges that he is under a legal liability to pay money, or whereunder any person obtains a legal right to the payment of money and the market value of any security means the value as fixed by any officer or person deputed by the Government in this behalf. (10) Except so far as is necessary for the purposes of any proceeding under this section, no information obtained in the course of any investigation made under sub-section (5) shall be divulged by any officer of Government without the consent of the Government. (11) The Government may, by order, delegate their powers under this section to any officer not below the rank of a District Collector and likewise withdraw the same. (12) The Government may, in their discretion at any time, either suo motu or on an application made by the aggrieved party, call for and examine the records of any order passed by the District Collector under sub-section (11) for the purpose of satisfying themselves as to the legality, regularity or propriety thereof and pass such orders in reference thereto as they may deem fit: Provided that no order under this sub-section shall be passed by the Government unless the party likely to be affected thereby has had an opportunity of making a representation.