(1) This Ordinance may be called the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Ordinance, 1975.
Short title, extent and commencement.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force at once.
%. (I) The provisions of this Ordinance shall apply only to the persons specified in sub-section (2).
Application.
(2) The persons referred to in sub-section (1) are the following, namely: —
(a) every person—
(i) who has been convicted under the Sea Customs Act, 1878, or the Customs Act, 1962, of an offence in relation to goods of a value exceeding one lakh of rupees; or 8 of 1878.
52 of 1982.
(ii) who has been convicted under the Foreign Exchange Regulation Act, 1947, or the Foreign Exchange Regulation Act, 1973, of an offence, the amount or value involved in which exceeds one lakh of rupees; or 7 of 1947.
46 of 1973.
(in) who having been convicted under the Sea Customs Act, 1878, or the Customs Act, 1962, has been convicted subsequently under either of those Acts; or 8 of 1878.
52 of 1962,
(iv) who having been convicted under the Foreign Exchange Regulation Act, 1947, or the Foreign Exchange Regulation Act, 1973, has been convicted subsequently under either of those Acts;
7 of 1947.
46 of 1973.
(b) 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—
(i) such order of detention, being an order to which the provisions of section 9 or section 12A of the said Act do not apply, has not been revoked on the report of the Advisory Board under section 8 of the said Act or before the receipt of the report of the Advisory Board; or
(ii) such order of detention being an order to which the provisions of section 9 of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the review under sub-section (3) of section 9, or on the report of the Advisory Board under section 8, read with sub-section (2) of section 9, of the said Act; or (Hi) such order of detention, being an order to which the provisions of section 12A of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the first review under sub-section (3) of that section, or on the basLs of the report of the Advisory Board under section 8, read with sub-section (6) of section 12A, of that Act; or SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 70}
(iv) such order of detention has not been set aside by a court of competent jurisdiction;
(c) every person who is a relative of a person referred to in clause (a) or clause (b);
(d) every associate of a person referred to in clause (a) or clause (b);
(c) 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 holder, is or was a transferee in good faith for adequate consideration.
Explanation 1.—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;
({!) brother or sister of the person;
(iii) brother or sister of the spouse of the person;
(iv) any lineal ascendant or descendant of the person;
(v) any lineal ascendant or descendant of the spouse of the person;
(ui) spouse of a person referred to in clause («), clause (iit), clause (iv) or clause (v);
(vii) any lineal descendant of a person referred to in clause (ii> or clause (Hi).
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 outhouses) of such person;
(ii) any individual who had been or is managing the affairs or keeping the accounts of such person;
(iii) any association of persons, p a r t n e r s * ! i p ^ % * * ? £ company within the meaning of the Companies Act 1956, of which such person had been or is a member, partner or director, 1 of 1958.
(iv) any individual who had been or is a member, partner or director of an association of persons, partnership firm or^private comnanv referred to in clause (Hi) at any time when such person had C n or is a member, partner or director of such associate, partnership firm or private company;
710 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(v) any person who had been or is managing the affairs, or keeping the accounts, of any association of personSj partnership firm or private company referred to in clause (iii);
(vi) the trustee of any trust, other than a trust created before the commencement of this Ordinance wholly for public religious or charitable purposes, 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) 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;
(mi) any individual whom the competent authority, for reasons to be recorded in writing, considers to be holding any properties on behalf of such person.
3. In this Ordinance, unless the context otherwise requires,—Definitions.
(o) "Appellate Tribunal" means the Appellate Tribunal for Forfeited Property constituted under section 12;
(b) "competent authority" means an officer of the Central Government authorised by it under sub-section (1) of section 5 to perform the functions of a competent authority under this Ordinance;
(c) "illegally acquired property", in relation to any person to whom this Ordinance applies, means—
(i) any property acquired by such person, whether before or after the commencement of this Ordinance, wholly or partly out of or by means of any income, earnings or assets derived or obtained from or attributable to any activity prohibited by or under any law for the time being in force relating to any matter in respect of which Parliament has power to make laws; or
(ii) any property acquired by such person, whether before or after the commencement of this Ordinance, wholly or partly out of or by means of any income, earnings or assets in respect of which any such law has been contravened; or
(iii) any property acquired by such person, whether before or after the commencement of this Ordinance, wholly or partly out of or by means of any income, earnings or assets the source of which cannot be proved and which cannot, be shown to be attributable to any act or thing done in respect of any matter in relation to which Parliament has no power to make laws; or
(iv) any property acquired by such person, whether before or after the commencement of this Ordinance, for a consideration, or by any means, wholly or partly traceable to any property referred to in clauses (i) to (iii) or the income or earnings from such property;
and includes— (A) any property held by such person which would have been, in relation to any previous holder thereof, illegally acquired property under this clause if such previous holder had not SEC- !] THE GAZETTE OF INDIA EXTRAORDINARY ? I I ceased to hold it, unless such person or any other person who held the property at any time after such previous holder or, as the case may be, the last of such previous holders is or was a transferee in good faith for adequate consideration;
(B) any property acquired by such person, whether before or after the commencement of this Ordinance, lor a consideration, or by any means, wholly or partly traceable to any property falling under item (A), or the income or earnings therefrom;
(d) "prescribed" means prescribed by rules made under this Ordinance;
(e) "property" includes any interest in property, movable or immovable.