Section 452 CrPC in NDPS Cases: Handling Custody of Seized Money

Interplay Between Section 452 CrPC and NDPS Act Regarding Custody of Seized Money

In cases involving the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, the seizure of assets—ranging from high-value cash and bank deposits to vehicles and electronics—is a standard part of the investigation. For those caught in these proceedings, the primary concern often shifts from the trial itself to the fate of their property. A critical legal question arises: how does Section 452 CrPC apply to the custody of money in such matters?

Because the NDPS Act is a special legislation designed to combat drug trafficking with stringent measures, it often overrides the general provisions of the Code of Criminal Procedure (CrPC). However, the disposal of seized property requires a delicate balance between the state's power to confiscate proceeds of crime and the constitutional right to property under Article 300A.

The Legal Framework: Section 452 CrPC vs. NDPS Provisions

Generally, Section 452 CrPC provides the court with the authority to make orders regarding the disposal of property produced before it or used during the commission of an offense once the trial has concluded. This may include the destruction of the property, its confiscation, or its delivery to the person claiming to be entitled to possession thereof

Sankapaka Laxman Bhoomaiah @ Babu VS Intelligence Officer, Narcotic Control Bureau Bombay

In the specific context of NDPS cases, this general rule is modified by specialized provisions:

• Section 60 NDPS: This section establishes that any narcotic drug, psychotropic substance, or any article (including money) used in the commission of an offense is liable to confiscation

  Bhola Singh @ Ayush Singh Son of Markandey Singh VS State of Bihar

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• Section 63 NDPS: This mandates that the Special Court must decide whether a seized article is liable for confiscation regardless of whether the accused is convicted, acquitted, or discharged

  Bhola Singh @ Ayush Singh Son of Markandey Singh VS State of Bihar

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• Section 36C NDPS: This serves as the bridge, stating that the provisions of the CrPC apply to NDPS proceedings provided they are not inconsistent or contrary to the NDPS Act

  Bhola Singh @ Ayush Singh Son of Markandey Singh VS State of Bihar

  2024 0 Supreme(Mad) 608.

Because the NDPS Act is a special law, its confiscation regime under Sections 60 and 63 typically takes precedence over the general disposal rules of Section 452 CrPC.

Interim Custody under Section 451 CrPC

Before a trial reaches its conclusion, claimants often seek the interim release of their assets to prevent loss of value. While Section 452 deals with finality, Section 451 CrPC handles the custody and disposal of property pending trial.

Courts are generally inclined to release property—such as vehicles—to prevent them from turning into scrap/junk in course of time which would be a wastage of national resources

Bhola Singh @ Ayush Singh Son of Markandey Singh VS State of Bihar

However, the Special Court must still adhere to the mandates of the NDPS Act. For instance, a claimant may be required to furnish a bank guarantee or a personal bond to ensure the property is produced during the trial

Bhola Singh @ Ayush Singh Son of Markandey Singh VS State of Bihar

Bhola Singh @ Ayush Singh Son of Markandey Singh VS State of Bihar

Final Disposal and the Return of Seized Money

Once the trial concludes, the court must determine the final ownership of the seized money. Under Section 452 CrPC, the court is required to conduct an inquiry to identify the person best entitled to the property.

A critical judicial principle in this regard is that acquittal does not automatically result in the return of property, nor does it automatically justify confiscation. The court must record reasons for its decision. In one notable instance, the Supreme Court observed that in absence of any evidence to contrary, as a general rule, property could be returned to person from whom it was seized

Sankapaka Laxman Bhoomaiah @ Babu VS Intelligence Officer, Narcotic Control Bureau Bombay

If a trial court orders the forfeiture of cash without conducting a proper inquiry into the rights of the claimant, such an order may be deemed flawed. The High Courts have stressed that property must be returned to the person who is the best entitled to possession... unless for reasons recorded otherwise the trial court may decide to confiscate

Sankapaka Laxman Bhoomaiah @ Babu VS Intelligence Officer, Narcotic Control Bureau Bombay

Practical Challenges in Claiming Seized Money

Recovering money seized under the NDPS Act is significantly more difficult than in standard criminal cases due to the following factors:

1. The Burden of Proof: Under Section 60(3) of the NDPS Act, the burden is often on the claimant to prove that the asset was not used in the commission of the offense with their knowledge

   Bhola Singh @ Ayush Singh Son of Markandey Singh VS State of Bihar

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2. Proceeds of Crime: Money is often viewed as the primary proceed of crime in drug trafficking. Unlike a vehicle, which may have a legitimate owner unaware of the crime, cash found with contraband is heavily presumed to be linked to the offense.
3. Stringent Bail and Asset Rules: The caution applied under Section 37 of the NDPS Act (which makes bail difficult) often mirrors the court's hesitation to release assets early in the proceedings 1994 0 Supreme(SC) 1024.

Steps for Seeking Custody of Seized Assets

For individuals seeking the return of seized money or property, the following procedural path is typically followed:

• Application for Interim Release: File an application under Section 451 CrPC before the Special Judge. This should be accompanied by evidence of ownership and an offer to provide sufficient sureties or bank guarantees.
• Demonstrating Lack of Knowledge: Specifically invoke Section 60(3) of the NDPS Act to argue that the asset was used without the owner's connivance.
• Post-Trial Claim: If interim release is denied, a formal claim must be made under Section 452 CrPC and Section 63 of the NDPS Act immediately following acquittal or discharge.
• Challenging Arbitrary Orders: If a court orders confiscation without a hearing or an inquiry, the claimant may approach the High Court under Sections 397 or 482 of the CrPC 2021 0 Supreme(HP) 873.

Summary Table: Asset Custody Scenarios

| Scenario | Primary Legal Provision | Typical Requirement | Likely Outcome || :--- | :--- | :--- | :--- || Interim Release | Section 451 CrPC + NDPS 60(3) | Bonds, Guarantees, Proof of Ownership | Granted if no risk of tampering/loss || Post-Acquittal | Section 452 CrPC + NDPS 63 | Inquiry into rightful entitlement | Return to person seized from, unless proven as crime proceeds || Confiscation | Section 63 NDPS | Proof of link to offense | Forfeited to the State |

Ultimately, while the NDPS Act provides the state with powerful tools for confiscation, Section 452 CrPC ensures that the final disposal of property is not arbitrary. The courts generally strive to ensure that assets are not held indefinitely without a legal basis, acknowledging that the right to be released of property is a facet of justice. This general information is based on judicial precedents and should not be treated as specific legal advice for any individual case.