Introduction to Section 120 BNSS
Section 120 BNSS deals with the forfeiture of property in certain criminal cases. It gives power to the court to take away any property that is believed to be earned through criminal activities. This section ensures that no one benefits from the money or property earned through illegal means, and the property is handed over to the Central Government. It is applied only after giving the affected person a chance to respond.
What is BNSS Section 120 ?
BNSS Section 120 allows the court to seize or forfeit any property that is believed to be earned through crime. If the accused cannot explain the source of such property within the given time, the court can transfer it to the Central Government. This helps stop criminals from enjoying illegal wealth.

BNSS Section of 120 in Simple Points
1. Court’s Power to Confiscate Property
This section gives the court the authority to seize property that is believed to be connected to crime. The court carefully reviews the evidence and the person’s explanation before reaching any decision. If it is proven that the property is illegal, it is confiscated. This helps in reducing criminal profits and discouraging illegal activities.
2. Opportunity Through Show-Cause Notice
Before taking any action, the court sends a formal notice to the person involved. This notice gives them 30 days to explain how the property was obtained. They must provide documents, income proof, or any other evidence to support their claim. This ensures that no one is punished without a fair chance to speak.
3. Ex Parte Decision If No Response
If the person doesn’t respond within the given time or fails to appear in court, the judge can make a decision based only on the available evidence. This is known as an “ex parte” order. It helps the court move forward even if the accused tries to delay the process.
4. Judgment Even Without Exact Identification
Sometimes, it is hard to exactly identify which assets are linked to crime. In such situations, the court uses its best judgment to decide which properties seem to be illegal. The court can then forfeit those properties even if they are not clearly marked as criminal proceeds.
5. Forfeiture of Company Shares
If the property includes shares in a company, the court can also seize those. The company is legally required to register the Central Government as the new owner of those shares. This rule applies even if the company’s rules or the Companies Act, 2013 say otherwise.
Section 120 of BNSS Overview
BNSS Section 120 comes into effect after a show-cause notice is issued under Section 119. If the court is satisfied that the property is connected to crime and the person fails to provide a valid explanation within 30 days, the court may declare such property as criminal proceeds and order it to be forfeited. Even if the exact illegal property can’t be pinpointed, the court can still act based on its judgment. This section applies to all types of properties, including shares in a company, and ensures that they are transferred to the Central Government.
1. Forfeiture starts after Show-Cause Notice
Before forfeiting any property, the court sends a show-cause notice under Section 119. This notice asks the person to explain how they got the property in question. Only after reviewing their explanation does the court move forward with the forfeiture process.
2. Court checks all available material
The court doesn’t decide in a hurry. It carefully examines the reply to the notice, any documents submitted, and other evidence. Only after studying everything does it decide whether the property is linked to any criminal activity.
3. Everyone gets a chance to speak
If someone else is holding the property for the main accused (like a friend or family member), even that person gets a chance to be heard. The law gives a fair opportunity to all parties involved before taking any decision.
4. Ex-Parte action if no reply in 30 days
If the person fails to appear or doesn’t respond within 30 days, the court can go ahead and make a decision without their input. This is called ex-parte action, and it’s done to avoid delays in justice.
5. Judgment even if exact property not clear
Sometimes, it may not be possible to identify the exact property earned through crime. Even then, the court can use its best judgment and decide which property most likely came from criminal sources, and take action.
6. Property stands automatically forfeited
Once the court decides that a property is the result of crime, it is automatically transferred to the Central Government. The person loses all rights over it, and the government becomes the new owner.
7. Free from all claims or disputes
The property that is forfeited will be free from any other claims, like loans, mortgages, or family disputes. This makes sure that the government gets a clear and undisputed title over the property.
8. Shares in companies also included
If the person owns shares in a company through crime money, those shares can also be taken away. This helps in preventing people from hiding criminal earnings in company investments.
9:. Company must register shares in Government’s name
If shares are forfeited, the company has to officially register those shares in the Central Government’s name, even if the company’s own rules or the Companies Act say otherwise. This makes the transfer smooth and legal.
10. Sends a strong message to criminals
This section sends a clear message: Crime doesn’t pay. If you earn through illegal means, you will not only face jail but also lose the wealth earned through crime. It acts as a strong deterrent for criminals.
Example 1:
A person is caught running an illegal drug business. During investigation, it is found that he owns a farmhouse worth ₹2 crore. He fails to explain how he got the money to buy it. The court, under BNSS Section 120, declares the property as proceeds of crime and orders it to be forfeited to the government.
Example 2:
A businessman is involved in financial fraud. His company shares were purchased using money gained from cheating investors. The court issues a notice. He fails to respond in time. The court declares the shares as crime proceeds and transfers them to the Central Government under BNSS Section 120.
Section 120 of BNSS Short Information
| Key Point | Description |
|---|---|
| 1. Forfeiture of Criminal Property | The court can declare property earned through crime as forfeited and transfer it to the Central Government. |
| 2. 30 Days to Respond | The person gets 30 days to explain the source of the property. If they fail, the court can act without their response (ex parte). |
| 3. Hearing Opportunity | Before forfeiting property, the court must give the affected person a fair chance to explain or show proof of legal ownership. |
| 4. Indirect Ownership Covered | If someone holds the property on behalf of the accused, they are also included in the proceedings to ensure fairness and transparency. |
| 5. Company Shares Included | Shares purchased using crime money can also be seized. The company must register those shares in the Central Government’s name. |
BNSS Section 120 FAQs
BNSS 120
Conclusion
BNSS Section 120 ensures that people do not profit from criminal activities. It allows the court to take away property earned through illegal means after giving a fair chance to explain its source. The person must respond within 30 days and provide documents to prove that the property was obtained lawfully. If they fail, the court can forfeit it to the Central Government. This section covers all types of properties, including company shares, and makes sure that crime-earned assets cannot be kept or hidden. It promotes justice, fairness, and honesty in the legal system.
Need Legal Support?
If you are dealing with court cases, marriage problems, or any other legal issue, our team at Marriage Solution – Lawyer Help is here for you. Simply fill out our quick online enquiry form, and we’ll connect you with the right legal expert to support your needs .