Power to forfeit funds of an unlawful association

Power to forfeit funds of an unlawful association. -

1. (1) Where the Government is satisfied, after such inquiry as it may think fit, that any monies, securities or credits are being used or are intended to be used for the purposes of an unlawful association, if may, by order in writing declare such monies, securities or credits to be forfeited to the Government.
2. (2) A copy of an order under sub-section (1) may be served on the person having custody of the monies, securities or credits, and on the service of such person shall pay or deliver the monies, securities or credits 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. (3) Before an order of forfeiture is made under sub-section (1) the Government shall give written notice to the person (if any) in whose custody the monies, securities or credits are found, of its intention to forfeit, and any person aggrieved thereby may within thirty days from the issue of such notice file an application to the High Court to establish that the monies, securities or credits or any of them are not liable to forfeiture, and if any such application is made, no order of forfeiture shall be passed in respect of the monies, securities or credits concerned until such application has been disposed of, and unless the High Court has decided that the monies, securities or credits are liable to forfeiture.
4. (4) In disposing of an application filed under sub-section (3) the procedure to be followed shall be the procedure laid down in the Code of Civil Procedure (which is in force for the time being in area concerned of the United State) for the investigation of claims so far as it can be made to apply, and the decision of the High Court shall be final.
5. (5) Where the Government has reason to believe that any person has custody of monies, securities or credits which are being used or are intended to be used for the purposes of an unlawful association, the Government may, by order in writing, prohibit such person from paying, delivering, transferring on 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.
6. (6) The Government may endorse a copy of an order under sub-section (5) for investigation to any officer it may select, such copy shall 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, search for monies and securities, and make inquiries from such person or any of his officers, agents or servants touching the origin of and dealings in any monies, securities or credits which the Investigating Officer may suspect are being used or are intended to be used for the purposes of an unlawful association.
7. (7) A copy of an order under this section may be served in the manner provided in the Criminal Procedure Code for the service of a 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 connected 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.
8. (8) Where an order of forfeiture is made under sub-section (1) in respect of any monies, securities or credits in respect of which a prohibitory order has been made under sub-section (5), 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 credits forfeited, to the order of the Government.
9. (9) Where any person liable under this section to pay or deliver any monies, securities or credits 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 credits or the market value of such securities.
10. (10) 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.
11. (11) 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 (6) shall be divulged by any officer of Government, without the consent of the Government.