Section 120 of BNSS : Section 120: Forfeiture of property in certain cases.

Explanation using Example

Example 1:

Scenario: Rajesh, a businessman, is suspected of being involved in a money laundering scheme. The Enforcement Directorate (ED) investigates and finds that Rajesh has acquired several properties using the proceeds of crime.

Application of Section 119:

1. Show-Cause Notice: The Court issues a show-cause notice to Rajesh, asking him to explain the source of his properties.
2. Explanation and Hearing: Rajesh appears before the Court and provides an explanation, claiming that the properties were acquired through legitimate business profits.
3. Court's Decision: After considering Rajesh's explanation and the evidence presented by the ED, the Court finds that some of the properties are indeed proceeds of crime.
4. Forfeiture: The Court orders that the identified properties be forfeited to the Central Government. Rajesh's properties are now legally owned by the government, free from any claims or encumbrances.

Example 2:

Scenario: Priya, an investor, holds shares in a company that is later found to be involved in fraudulent activities. The investigation reveals that Priya's shares were purchased using money obtained through these illegal activities.

Application of Section 119:

1. Show-Cause Notice: The Court issues a show-cause notice to Priya, asking her to explain the source of the funds used to purchase the shares.
2. Explanation and Hearing: Priya fails to respond to the show-cause notice within the 30-day period.
3. Ex Parte Decision: The Court proceeds ex parte (wi...

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