1. GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE
COMPETENT AUTHORITY SAFEM (FOP) & NDPS ACT
SOUTH ZONE CHENNAI

2. Why forfeiture ? To hit out at the heart of an offence
To hit where it hurts more-- financially

3. Philosophy
The avowed object behind is
“No person has a right to the profits of crime money-but such money is that of the State.”

4. Purpose Forfeiture acts as
A deterrent as well as punishment against smuggling and drug offences
To deprive the offenders and their relatives and associates of their ill-gotten wealth
Cripple the smugglers from enjoying the ill gotten wealth
A tool to support community drug enforcement

5. Basis of forfeiture Criminal ingredients such as
Preventive detention such as PITNDPS / COFEPOSA
Conviction under Customs Act, FERA and NDPS are the basis for this civil procedure

6. Development of forfeiture law
Enemy property Act, 1968
SAFEM(FOP) Act, 1976
NDPS Act, 1985
MONEY LAUNDERING Act, 2004

7. Forfeiture Of Properties Under SAFEM(FOP)Act & NDPS Act

8. Basis of forfeiture Criminal ingredients such as
Preventive detention such as PITNDPS / COFEPOSA
Conviction under Customs Act, FERA and NDPS
are the basis for this civil procedure

9. How administered? The Competent Authority administers:
The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 [or SAFEM(FOP) Act-in short] &
Chapter VA of the Narcotics Drugs and Psychotropic Substances Act, 1985 [or NDPS Act-in short].
He is also called the “Administrator” under the NDPS Act

10. Organisation The Competent Authority and Administrator is
An officer of the rank of Joint Secretary to the Government on deputation
Appointed u/s 5 of the SAFEM(FOP)Act
Appointed u/s 68D of the NDPS Act.

11. Jurisdiction
There are 5 Competent Authorities in the country located at :
Chennai
Lucknow
Delhi
Mumbai
Kolkata.
They are either from Income Tax or Central Excise and Customs Department.

12. South Zone Tamil Nadu Kerala Karnataka Andhra Pradesh Pondicherry (UT)
Lakshadweep (UT)

13. South Zone Shri S. Ravi, Competent Authority and Administrator,
SAFEM(FOP)A & NDPS Act
Address:
‘UTSAV’, No.64/1, G.N. Chetty Road, T. Nagar, Chennai Fax : Phone: , ,

14. West Zone Maharashtra Gujarat Madhya Pradesh Goa Chattisgarh
Daman & Diu (UT)
Dadra Nagar Haveli (UT)

15. West Zone Shri S. Ravi, (Addl.Charge)
Competent Authority and Administrator,
SAFEM(FOP)A & NDPS Act
Address:
Mittal Court, ‘C’ Wing, 3rd Floor Nariman Point, Mumbai Fax : Phone: ,

16. East Zone West Bengal Orissa Assam Manipur Meghalaya Mizoram Nagaland
Tripura
Arunachala Pradesh
Sikkim
Andaman Nicobar Islands (UT)

17. East Zone Competent Authority and Administrator, Address:
SAFEM(FOP)A & NDPS Act,
Address:
20 B, Abdul Hamid Street, (4th Floor), Kolkata Fax : Phone: , ,

18. North Zone Jammu and Kashmir Rajasthan Punjab Haryana Himachal Pradesh
Chandigarh (UT)
New Delhi (UT)

19. North Zone Smt. Archana Ranjan Competent Authority and Administrator,
SAFEM(FOP)A & NDPS Act,
Address:
B’, Wing, 9th Floor, Loknayak Bhavan,
New Delhi Fax : Phone: , ,

20. Lucknow
Uttar Pradesh
Uttaranchal
Jharkhand
Bihar

21. Lucknow Address: Competent Authority and Administrator,
SAFEM(FOP)A & NDPS Act,
Address:
20 B, Abdul Hamid Street, (4th Floor), Kolkatta Fax : Phone: , ,

22. Jurisdiction
The area of jurisdiction of the Competent Authorities shall be on the basis of the address/residence of the person affected. If there is more than one address/place of residence, the Competent Authority in whose jurisdiction the investigating agency is located shall have the jurisdiction

23. Person Defined u/s 68-A of NDPS Act
Conviction of an offence punishable with imprisonment for 10 years or more
Person who has been convicted of a similar offence by a Competent Court outside India.
Person against whom an arrest warrant has been issued for an offence punishable with an imprisonment for 10 years or more.
Arrest?
Detention?
Conviction?

24. Person Defined u/s 2 of SAFEM (FOP) Act
convicted
Customs Act Value > Rs.1 Lakh
FERA Value > Rs.1 Lakh
Subsequent convictions under Customs Act & FERA. No value limit.

25. Person Defined u/s 2 OF SAFEM(FOP) Act
Detention order under COFEPOSA
“Made” is good enough
No proceedings if the detention is set aside by the Advisory Board or any Competent court
COFEPOSA/
PITNDPS
detenue

26. Definitions Person Affected [PA] Illegally acquired Property
Any person caught by the mischief of section 2 of SAFEM(FOP)A is called so. [relatives and associates included]
A person who is liable to be convicted for an offence punishable under NDPS Act with imprisonment for a term of 10 years or more.
Illegally acquired Property
Any property acquired by the Person Affected by any activity prohibited by any law enacted by parliament or in contravention of any law enacted by parliament
Under NDPS Act the illegally acquired property is defined as any property acquired in contravention of the NDPS Act.

27. Illegally Acquired Property
SAFEM(FOP)A : Any property acquired by the person affected by any activity prohibited by any law enacted by parliament or in contravention of any law enacted by parliament. If the property is acquired without violation of any law of the land, evidence to be produced by person affected.
NDPS: Any property acquired in contravention of the NDPS Act.

28. Who are covered? PERSON AFFECTED SPOUSE ` PARENTS BROTHER / SISTER
CHILDREN
ASSOCIATES
TRUSTS
ANY OTHER PERSON
SON / DAUGHTER

29. Special Features
The Competent Authority has the powers of the civil court under the Code of Civil Procedure
Therefore, no civil court shall have jurisdiction in respect of which the CA is empowered
No injunction shall be granted by any court.

30. Special Features
Burden of proof is always on the Person Affected in terms of Section 8 of the SAFEM(FOP)A and Section 68J of NDPS Act.
Findings under other laws not conclusive
If any property is transferred by any mode after the issue of a notice under the SAFEM(FOP)A or the NDPS Act, such transfer shall be deemed to be null and void under the SAFEM(FOP)A and NDPS Act.

31. Fine in LIEU of Forfeiture
After the Competent Authority decided that any property stands forfeited to the Central Government and it is a case where the source of only a part, being less than one half of the income, earnings or assets which the property was acquired has not been proved, option to pay a fine equal to 120% of the value of such part can be given under Section 9 of the SAFEM (FOP) Act.
Under NDPS Act the fine will be equal to the market value of such part which has not been proved to be legally acquired.

32. 3 Fs For effective implementation Finding Freezing
Forfeiture of criminally derived assets is called for.

33. Seizure or Freezing
The investigating officer designated under Section 53 of the NDPS Act is empowered u/s 68F(1) to seize/freeze assets, if he has reason to believe that the property might be transferred, concealed or disposed of. This is essentially a provisional attachment.
He should intimate the Competent Authority within 48 hours.
The Competent Authority to confirm the seizure or freezing order within 30 days u/s 68F(2).
However, notice for forfeiture of the property can be issued only after the person is convicted.
No such provision for seizing or freezing of assets is provided under SAFEM(FOP)A.

34. Procedure for forfeiture
Commencement of proceedings
A notice under Section 6 of SAFEM(FOP)A and Section 68H of NDPS Act, is issued to the Person Affected calling upon him to show as to why the properties mentioned in the notice should not be forfeited to the Government.
30 days time is given to the Person Affected to reply to the notice.
After considering the reply or oral submissions by the Person Affected, an order forfeiting [or dropping the proceedings] property is passed by the Competent Authority under Section 7 of SAFEM(FOP)A or section 68-I of the NDPS Act.

35. Information to Competent Authority
All officers of Central Government or
State Government or
Local Authority
are required to furnish information in relation to Person Affected which will be relevant for the purposes of the SAFEM(FOP)A or NDPS Act.

36. Information to Competent Authority
Officers of the Customs Department/Central Excise Department
Directorate of Revenue Intelligence
Income Tax
Enforcement Directorate
Narcotics Intelligence Bureau
Narcotics Control Bureau
Officers of Police
Such other officers of Central / State Government as specified
Are required to assist the Competent Authority for identifying illegally acquired property and maintenance of the forfeited property as well as disposal of the property forfeited.

37. Time limit
The SAFEM(FOP)A has no time limit either for initiating or concluding forfeiture as far as illegally acquired property is concerned.
Property acquired even at a distant past can be forfeited if there is no evidence to show that the property was acquired legally.
But under NDPS Act, any property acquired before a period of 6 years from the date a warrant of arrest has been made against the Person Affected under the NDPS Act cannot be forfeited.

38. Appeal One tier appeal is provided
Appeal lies with Appellate Tribunal for Forfeited Property (ATFP)
The ATFP consist of 3 members- A Judge of the High Court, acts as a Chairman of the ATFP and a member each from the CBDT and CBEC act as members of the Tribunal.
45 days time period is allowed for the Person Affected to file an appeal against an order passed by the Competent Authority under Section 7 of the SAFEM(FOP)A or Section 68F (2) or 68 I of the NDPS Act.
ATFP has been empowered to condone a delay of 15 days only, if it is satisfied that the appellant was prevented from filing the appeal for sufficient cause.

39. Powers to take possession
The Competent Authority or
Any person duly authorised by the Competent Authority
May take possession of any forfeited property u/s 19 of the SAFEM(FOP)A or Section 68 U of the NDPS Act within 30 days of the service of the forfeiture order issued