Section 4. Prohibition of holding illegally acquired property
(1) As from the commencement of this Act, it shall not be lawful for any person to whom this Act applies to hold any illegally acquired property either by himself or through any other person on his behalf.
(2) Where any person holds any illegally acquired property in contravention of the provisions of sub-section (1), such property shall be liable to be forfeited to the Central Government in accordance with the provisions of this Act.
Judgements applying section 4
This judgment quashes an order forfeiting immovable property under SAFEMA. The Tribunal empowered that the appellants, being bona fide purchasers for valid consideration prior to the detention of the alleged smuggler, fall outside the Act's scope and are not liable for forfeiture.
SAFEMA 1976: Supreme Court (Khanwilkar & Khanna JJ., 14-12-2021, CA Nos. 8592-8593 of 2010) held that a primary notice under s.6(1) need not be served on the convict when forfeiture targets properties held by his relatives; notice lies to the person to whom the Act applies holding the property;
AllowedOpenThe Kerala High Court dismissed a writ appeal challenging forfeiture orders passed under the Smugglers & Foreign Exchange Manipulators Act, 1976 against properties of a deceased income earner.
DismissedOpenWinston Tan & Anr. v. Union of India & Anr., Civil Appeal No. 7207 of 2012, decided 04-10-2012 ([2012] 8 S.C.R. 1107; R.M. Lodha, J., with Anil R. Dave, JJ.): purchase of a SAFEMA-notified flat after s.6(1) notices — s.11 nullity of post-notice transfers, s.7 forfeiture order relates back to first notice, s.2(2)(e)…
DismissedOpen- DismissedOpen