Bharatiya Nagarik Suraksha Sanhita (BNSS): Section 107: Proceeds of Crime

• The BNSS introduces Section 107, which deals with properties derived or obtained as a result of a criminal activity.
• This term was previously mentioned in the Prevention of Money Laundering Act (PMLA), 2002, or the chapter, ‘Reciprocal Arrangements for Assistance in Certain Matters and Procedure for Attachment and Forfeiture of Property’, under the Code of Criminal Procedure (CrPC).
• Section 107 of the BNSS gives unbridled powers to the court to attach any property and forfeit the proceeds of crime to the government under certain conditions.
• No preconditions are prescribed under Section 107 of the BNSS.
• The property involved in money laundering is disposed of by the Adjudicating Authority only on the conclusion of a trial of the offence.
• Section 107 of the BNSS is silent about the stage of disposal of such property. If the court or magistrate finds the attached or seized properties to be the proceeds of crime, it shall order the District Magistrate to rateably distribute such proceeds of crime to the persons who are affected by such crime.
• The chapter deals with contingencies such as the custody and disposal of property pending trial, the disposal of property at the conclusion of the trial, and restoration of possession of immovable property.
• Section 107 of the BNSS requires the court to issue a show-cause notice returnable within 14 days on why an order of attachment of property (i.e., proceeds of crime) shall not be made.
• The proceeds of crime or property may be disposed of in about three months of time, without the investigation or trial coming to an end.
• The legislative intent of introducing Section 107 in the BNSS appears to be to empower States to undertake expeditious disposal and distribution of the proceeds of crime to its rightful claimants.