Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976

2. Application-

(1) The provisions of this Act shall apply only to the person specified in sub-section (2).

(2) The person referred to in sub-section (1) are the following namely:-

(a) Every person-

1. Who has been convicted under the Sea Customer Act, 1878 (8 of 1878), or the Customs Act, 1962 (52 of 1962), of an offence in relation to goods of a value exceeding one lakh of rupees; or

2. Who has been convicted under the Foreign Exchange Regulation Act, 1947 (7 of 1947), or the Foreign Exchange Regulation Act, 1973 (46 of 1973), of an offence, the amount or value involved in which exceeds one lakh or rupees; or

3. Who having been convicted under the Sea Customs Act, 1878(8 of 1878), or the Customs Act, 1962 (52 of 1962), has been convicted subsequently under either of those Acts; or

4. Who having been convicted under the Foreign Exchange Regulation Act, 1947 (7 or 1947), or the Foreign Exchange Regulation Act, 1973 (46 of 1973), has been convicted subsequently under either of those Acts;

5. Every person in respect of whom an order of detention has been made under the Conservation of /Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974):

Provided that-

1. Such order of detention, being an order to which the provisions of section 9 or section 12A of the said Act do no apply, has not been revoked on the report of the Advisory Board under section 8 of the said Act or before the receipt of the report of the Advisory Board or before making a reference to the Advisory Board; or

2. Such order of detention, being an order to which the provisions of section 9 of the said Act apply, has snot been revoked before the expiry of the time for, or on the basis of the review under sub-section (3) of section 9, or on the report of the Advisory Board under section8, read with sub-section (2) of section 9 of the said Act; or

3. Such order of detention, being an order to which the provisions of section12A of the said Act apply, has snot been revoked before the expiry of the time for, or on the basis of the review under sub-section (3) of section 9, or on the report of the Advisory Board under section8, read with sub-section (6) of section 12A, of that Act; or

4. Such order of detention has not been set aside by a court of competent jurisdiction;

1. Every person who is a relative of a person referred to in clause (a) or clause(b);

2. Every associate person referred to in clause (a) or clauses (b);

3. Any holder (hereafter in this clause referred to as the present holder) of any property which was at any time previously held by a person referred to in clause (a) or clause (b) unless the present holder or, as the case may be, any one who held such property after such person and before the present and before the present holder, is or was a transferee in good faith for adequate consideration.

Explanation1.-For the purposes of sub-clause (I) of clause (a), the value of any goods in relation to which a person has been convicted of an offence shall be the wholesale price of the goods in the ordinary course of trade in India as on the date of the commission of the offence.

Explanation 2 .-For the purposes of clause (c), "relative", in relation to a person, means -

1. Spouse of the person;

2. Brother or sister of the person;

3. Brother or sister of the spouse of the person;

4. Any lineal ascendant or descendant of the person;

5. Any lineal ascendant or descendant of the spouse of the person;

6. Spouse of a person referred to in clause (ii), clauses(iii) clause (iv)or clauses (v);

(vii) Any lineal descendant of a person referred to in clause (ii) or clause (iii);

Explanation 3.-For the purposes of clause (d), "associate", in relation to a person, means-

(i) Any individual who had been or is residing in the residential premises (including out-houses) of such person;

(ii) Any individual who had been or is managing the affairs or keeping the accounts of such person;

1. Any association of persons, body of individuals, partnership firm, or private company within the meaning of the Companies Act, 1956 (1 of 1956), of which such person had been or is a member, partner or director;

2. Any individual who had been or is a member, partner or director of an association of person, body of individuals partnership firm, or private company within the meaning of the Companies when such person had been or is a member, partner or director of such association body, partnership firm or private company;

3. Any person who had been or is managing the affairs, or keeping the accounts, of an association of person, body of individuals, partnership firm or private company referred to in clause (iii);

4. The trustee of any trust, where,-

a. the trust has been created by such person; or

b. the value of the assets contributed by such person (including the  value of the assets if any, contributed by him earlier) to the trust amounts, on the date on which the contribution is made, to not less than twenty per cent, of the value of the assets of the trust on that date

1.  where the competent authority , for reasons to be recorded in writing, considers that any properties of such person are held on his behalf by any other person, such other person.

Explanation 4.- For the avoidance of doubt , it is hereby provided that the question whether any person is a person to whom the provisions of this Act apply may be determined with reference to any facts, circumstances or events (including any conviction or detention) which occurred or took place before the commencement of this Act.

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