Confiscation of property is contingent on a conviction; upon the death of the accused, any confiscation order becomes invalid, allowing for the return of properties to legal heirs.

JUDGMENT :

SIBO SANKAR MISHRA, J.

The present appeal has been filed under Section 17 of the Orissa Special Courts Act, 2006, challenging the order dated 10.09.2024, passed by the learned Authorized Officer, Special Court, Bhubaneswar, in Confiscation Case No. 2 of 2011, whereby the petition filed by the appellants under Section 19 of the Orissa Special Courts Act, 2006, seeking release of the confiscated properties of late Suryanarayan Behera, has been rejected.

2. The present appeal arises from the confiscation proceedings initiated against late Suryanarayan Behera, who alleged to had accumulated assets disproportionate to his known sources of income. The Vigilance Department registered a case against him under Sections 13 (1)(e) read with 13(2) of the Prevention of Corruption Act, 1988, on the allegation of amassing wealth to the known source of income during the period from 21.07.1990 to 07.06.1995. Pursuant to the investigation, trial was initiated in T.R. Case No. 04/06 of 2008/2002 before the learned Special Judge, Special Court, Bhubaneswar against the said accused Suryanarayan Behera.

3. On 16.04.2012, the learned Authorized Officer, Special Court, Bhubaneswar, passed an order holding that late Suryanarayan Behera had amassed assets disproportionate to his lawful income. Consequently, the Officer directed that the movable and immovable properties of the accused be confiscated to the Government of Odisha, free from all encumbrances. Aggrieved by this order, late Suryanarayan Behera filed CRLA No. 298 of 2012 before this Hon’ble Court, challenging the legality of the confiscation order.

4. During the pendency of the appeal, this Court, vide order dated 18.05.2012 in Misc. Case No. 772 of 2012, directed that the confiscated assets shall not be auctioned or disposed of, subject to the appellant furnishing a bank guarantee of Rs.10 lakhs in favor of the Authorized Officer. In compliance with this direction, late Suryanarayan Behera furnished the bank guarantee on 30.05.2012, which is being subsequently renewed from time to time.

5. While the appeal was still pending, late Suryanarayan Behera passed away on 04.06.2021. Following his demise, the learned Special Judge, Special Court, Bhubaneswar, vide order dated 15.09.2021, declared that the trial proceedings in T.R. Case No. 04/06 of 2008/2002 abated. Thereafter, on 06.07.2024, the legal heirs of late Suryanarayan Behera, being the present appellants, filed a petition under Section 19 of the Orissa Special Courts Act, 2006 (for short “the Act, 2006”), before the learned Authorized Officer, Special Court, Bhubaneswar, seeking release of the confiscated property and money.

6. On 10.09.2024, the learned Authorized Officer rejected the petition, stating that the legality of the confiscation order dated 16.04.2012 is pending adjudication before this Court in CRLA No. 298 of 2012, and as such, no order for release of property could be passed. Aggrieved by this rejection, the present appeal under Section 17 of the Act, 2006, has been preferred before this Court.

7. Heard Mr. B.K. Sharma, learned counsel for the appellants and Mr. Srimanta Das, learned Senior Standing Counsel for the Vigilance Department.

8. The learned counsel for the appellants, who are the legal heirs of late Suryanarayan Behera, contended that the confiscation of property and money must be contingent upon the final outcome of the criminal trial. In the present case, late Suryanarayan Behera passed away on 04.06.2021, and the trial proceedings in T.R. Case No. 04/06 of 2008/2002 has bee