Company : Sol Infotech Pvt. Ltd. Website : www.courtkutchehry.com Illegally Acquired Property (Receipt, Management and Disposal) Rules, 1989 CONTENTS CHAPTER 1 :- Preliminary 1. Short title and commencement 2. Definitions CHAPTER 2 :- Assistance to the Administrators 3. Assistance to the Administrators CHAPTER 3 :- Disignation of Godowns, Receipt and Management of Property 4. Designation of godowns 5. Proper accounting of properties 6. Godown register 7. Godowa register for valuables 8. Storage of property 9. Management of Land and Building 10. Occupation of land or building 11. Record of land or building 12. Storage of property other than valuables 13. Placement of Stock-cards 14. Opening and re-scaling of the pachage 15. Maintenance of seized/confiscatcd conveyances CHAPTER 4 :- Disposal of Property 16. Disposal of livestocks, perishables, etc 17. Disposal of valuables 18. Disposal of currency 19. Disposal of the property 20. Disposal of land or building 21. Disposal of conveyances 22. Furnisbing Reports and Returns CHAPTER 5 :- Miscellaneous 23. Periodical Reports 24. Periodical Inspection 25. Record of Receipt and Disposal Illegally Acquired Property (Receipt, Management and Disposal) Rules, 1989 In exercise of the powers conferred by Section 76 of the Narcotic Drngr and Psychotropic Substances Act) 1985 (61 of 1985), the Central Government hereby makes the following rules, namely :- CHAPTER 1 Preliminary 1. Short title and commencement :- (1) These rules may be called the Illegally Acquired Property (Receipt, Management and Disposal) Rules, 1989. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Definitions :- In these rules unless the context otherwise requires,- (a) "Act" means the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of !985) ; (b) "Administrator" means any officer appointed by the Central Government under sub-section (1) of Section 68-G of the Act ; (c) "Form" means form annexed to these rules; (d) "Fund" means the National Fund for Control of Drug Abuse, constituted under sub-section (1) of Section 7-A of the Act ; (e) "Godown" means a godown for storage of property received under sub-section (2) of Section 68-G of the Act. CHAPTER 2 Assistance to the Administrators 3. Assistance to the Administrators :- T h e Central Government may provide from time to time such members of statf and other persons as it thinks fit to assist the Administrator in exercise of his powers and performance of duties under these rules. CHAPTER 3 Disignation of Godowns, Receipt and Management of Property 4. Designation of godowns :- (1) The Administrator shall designate as many godowns as may be necessary for the storage of propel ty mentioned in the orders made under sub-section (1) of Section 68-F or sub-section (3) of Section 68-1 of the Act. (2) The Administrator shall select godowns referred to in sub-rule (1), keeping in view the security of the premises, storage capacity, nature of property and other relevant factors. (3) Each designated godown shall have a godown keeper and a godown- in-charge to assist the Administrator. 5. Proper accounting of properties :- T he Administrator shall, at the time of receiving the properties, ensure proper identification of such property with reference to iti particulars mentioned in the order made under sub-section (1) of Section 68-F or sub-section (3) of Section rule 68(1) of (.he Act, ai the case may be. 6. Godown register :- T he Administrator shall cause a register in Form I for recording entries in respect of property other than the properlies referred to in Rule 7 to be maintained. 7. Godowa register for valuables :- The Administrator shall caure a register in Form II for recording cn.rics in respect '_f property, name^v, gold and gold jew-llery, diamonds (including rough and uncut diamonds). precious and semi-precious stones other than diamonds and wrist watche? (hereinafter called 'valuables') to be maintained. 8. Storage of property :- (1) The Administrator shall ensure that the packages conti"ining valuables are kept in the godown in an iron safe and vault, under double lock system, one key remaining with the godown-keeper and the other to be ret^sned by the godown-in-chirge. (2) Where, for any valid reasons, it is found that the packages containing valuables may not be kept in godown, such packages shall be kept in lockers obtained exclusively for this purpose, either with any branch of the Reserve Bank of India or of any nationalised bank. (3) The packages referred to in sub-rules (1) and (2) shall be stored systematically casewise, serialwisc, yearwise and with proper identification marks to facilitate re-check and inspection. 9. Management of Land and Building :- The Administrator may authorise anv officer referred to in Section 63-T of the Act to take possession of vacant land or building in respect of which- (i) an order of seizure of freezing of such land or building has been made under sub-section (1) of Section 68-F of the Act ; or (ii) an order for forfeiture of such land or building has been made under sub-section (1) of Section 80-I of the Ace. 10. Occupation of land or building :- (1) Where any property in the nature of land or building is in possession of a lessee or a tenant and against such property an order under sub-section (1) of Section 68-F of the Act has been made, the Administrator may allow the lease or tenant to continue in occupation of such land or building in accordance with such terms and conditions which existed on the date of passing an order under sub-section (1) of Section 68-F of the Act. (2) The income derived from such properly shall be kept with the Administrator until such time the competent authority declares the property forfeited under sub-section (3) of Section 68-I. (3) Where any property is declared not liable to be forfeited under the Act, the Administrator shall, within reasonable time, return to the person such [iroperty and the income derived therefrom after deducting such expenses if any, winch were incurred on the maintenance and management of the property. 11. Record of land or building :- T he Administrator shall maintain a record of land or building in Form III. 12. Storage of property other than valuables :- (1) Movable property other than valuables shall be stored in almirahs and racks. (2) Each almirah and rack shall have a stock-card indicating the case number and full description of the property. 13. Placement of Stock-cards :- The godown-in-charge shall ensure that the racks or almirahs or any other thing used for storage of property, display stock-cards indicating the case number and full description of the property stored. 14. Opening and re-scaling of the pachage :- *.- (1) Where any package is to be opened for any reason, the same shall be opened in the presence of the owner and the concerned godown-in-charge after obtaining the order of the Administrator. (2) The packages shall be resealed immediately after the purpose, for which such packages were opened, is fulfilled in the presence of the owner and the concerned godown-in-charge. (3) At the time of resealing,the owner, and the concerned godown- in- charge, shall affix their seals. 15. Maintenance of seized/confiscatcd conveyances :- Convey- ances, such as aircrafts, vessels, motor vehicles and any other mode of conveyance shall he properly maintained by the godown-in-charge. CHAPTER 4 Disposal of Property 16. Disposal of livestocks, perishables, etc :- Subject to the iale proceeds being credited to the Fund under Section 7-A of the Act, the Administrator shall dispose of the livestock and pioperty which is perishable in nature or prone to decay in the manner as he deems fit. 17. Disposal of valuables :- Subject to the sale proceeds being credited to the Fund under Section 7-A of the Act, the Admin'.strator shall dispose of the valuables mentioned below in the following manners, namely:- (1) Gold, Gold Jewellery, Silver and Silver Jewellery: The valuables, namely, gold, gold jewellery, silver and silver jewellery shall be deposited in theGovernment of India Mints which shall credit the value of such property to the Central Government. (2) Diamonds: Rough and uncut diamonds shall be sold either by auction or tender to import licence holders against debit of their licences. Cut and polished diamonds shall be sold by auction or tender with the ipecific condition that such diamonds sliall be exported. (3) Precious and semi-precious stones other than diamonds : (i) Rough and uncut precious and semi-precious stones other lhan diamonds shall be sold by auction or tender to holders of import licencesi against debit of heir licencees, in the internal market. (4) Gin and polished pi-i.-cioiis and seini-prccioli.s stones, otiii.-r tlian diainsndii, sliall be sold internally, by auction or by tender. 18. Disposal of currency :- (1) Indian and Foreign currency shall be deposited with the Reserve Bank of India or any nationalised Bank. (2) The amount so deposited shall be credited to the Fund constituted under this Act. 19. Disposal of the property :- Property other than those mentioned in Rule 16 to 18 shall be disposed of by public auction. 20. Disposal of land or building :- Subject to the relevant provisions of any law relating to the acquisition or disposal of immovable property and also subject to the sale proceeds being credited to the Fund under Section 7-A of the Act, land or building shall be disposed of by tender or by public auction. 21. Disposal of conveyances :- Conveyances, such as aircrafts, vessels, vehicles and other mode conveyance shall be sold by public auction of or by tender. 22. Furnisbing Reports and Returns :- T h e Administrator shall furnish a quarterly statement to ihe Narcotics Control Bureau indicating th" value of the property received and disposed of and the closing balance of all properties kept in the godowns and banks. CHAPTER 5 Miscellaneous 23. Periodical Reports :- The godown-in-charge shall submit, every month, a report to the Administrator of the property received or disposed of during that period. 24. Periodical Inspection :- The Administrator willi a view lo ensuring safety, aecurity) proper accounting and management of all properties in the godowns, conduct physical inspection and verification with the help of such officers as he thinks fit. 25. Record of Receipt and Disposal :- The Administrator shall maintain a record of receipt and disposal of all properties received and disposed of under these rules. He shall also maintain an account of all income received and expenditure incurred on receipt, management and disposal of such property.