Section 68-I of NDPS Act, 1985 : Section 68-I: Forfeiture Of Property In Certain Cases

Explanation using Example

Imagine a scenario where the authorities suspect that Mr. Sharma, a businessman, has acquired several properties through the profits of illegal drug trafficking. The government issues a show cause notice to Mr. Sharma under Section 68H of The Narcotic Drugs and Psychotropic Substances Act, 1985, asking him to explain how he acquired these properties.

Mr. Sharma is given 30 days to appear before the competent authority and present his case. However, he fails to respond or appear within the specified time. Consequently, the competent authority conducts an ex parte inquiry based on the available evidence and determines that some of Mr. Sharma's properties are indeed illegally acquired.

Since the authority cannot specifically identify all such properties, it uses its judgment to designate certain properties as illegally acquired. As per Section 68-I, the authority then declares these properties forfeited to the Central Government, stripping them of all legal encumbrances.

Furthermore, if Mr. Sharma owned shares in a company, those shares would now be transferred to the Central Government's name, regardless of the company's articles of association or the Companies Act, 1956.