Lok Sabha Question No. 1123 (UNSTARRED), answered on 2024-12-02
Subject: Unsold seized assets from various Central Agencies
Ministry: FINANCE
Asked by: Shri Parshottambhai Rupala

Government of India Ministry of Finance Department of Revenue

## LOK SABHA UN-STARRED QUESTION NO. 1123

TO BE ANSWERED ON MONDAY, DECEMBER 02, 2024

Agrahayana 11, 1946 (Saka)

## UNSOLD SEIZED ASSETS FROM VARIOUS CENTRAL AGENCIES

1123. Shri Parshottambhai Rupala:

Will the Minister of FINANCE be pleased to state:

(a)  whether the Government has taken any steps regarding unsold seized assets with various central agencies like the ED, DRI and Income Tax Department, which have led to a decrease in the value of these assets and created challenges for these agencies in maintaining their security over an extended period; and

(b) whether the Government has any plans to amend the rules to permit prompt sale of such assets  to  generate  revenue  and  if  the  litigation  doesn't  go  well  whether  the  realized  amount along with interest could be returned to the affected party?

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## ANSWER (SHRI PANKAJ CHAUDHARY)

(a):  The  Government  has  taken  many  steps  regulating  disposal  of  assets  seized  by  various agencies  like  ED,  DRI  and  Income  Tax  Department.  The  provisions  of  the  Prevention  of Money-laundering  Act  and  the  Prevention  of  Money-Laundering  (Taking  Possession  of Attached  or  Frozen  Properties  Confirmed  by  the  Adjudicating  Authority)  Rules,  2013 prescribe  provisions  of  disposal  of  certain  type  of  confirmed  attached/  frozen  movable properties which are subject to speedy and natural decay or the expense of maintenance of such properties is likely to exceed its value, including property being mode of conveyance and necessary steps as per these provisions are taken by ED in appropriate cases.

The  Section  110  (1A)  of  the  Customs  Act,  1962  authorizes  Central  Government  to specify the goods or class of goods which the perishable or hazardous nature of any goods, depreciation in the value of the goods with the passage of time, constraints of storage space for  the  goods  or  any  other  relevant  considerations  to  be  disposed  of  after  the  seizure  is affected. The  Central  Government  had  notified  a  total  21  class  of  goods  which  can  be disposed off immediately after it's seizure in exercise of the powers granted by the legislature in  section  110  (1A)  which  includes  gold  and  gold  jewellery,  currency  (Indian  &  Foreign), electronic  goods,  cellular  phones,  conveyance,  liquors  etc.  [Notification  no.  31/86-Cus]. Accordingly, the notified goods, including conveyance, are disposed of immediately after its seizure following the procedure prescribed in the Disposal Manual, 2019 as well as Section 110(1B)  of  CBIC.  Similar  provision  also  exist  in  the  NDPS  Act  section  52(A)  where  the Central  Government  can  notify  certain  narcotic  drugs,  psychotropic  substances,  controlled substances  or  conveyances  on  account  of  their  hazardous  nature,  vulnerability  to  theft, substitution, constraint of proper storage space for there early disposal.

As per section 110A of the Customs Act, 1962, there are provisions in relation to provisional release of goods, documents and things seized pending adjudication subject to taking a bond and security as per the conditions mandated by the adjudicating authority. The Section 28BA provides for provisional attachment of property belonging to the person on whom notice is served  under  sub-section  (1)  or  sub-section  (4)  of  section  28  or  sub-section  (3)  of  section 28AAA or sub-section (2)  of  section  28B,  for  protecting  the  interests  of  revenue  with  the previous approval of the Principal Commissioner of Customs or Commissioner.     As regards to the confirmed demands, Section 142 of the Customs Act, 1962 provides for detaining and sale of the movable and immovable properties.

Further, The Income Tax Department has systems in place for the recovery of tax dues through  various  methods,  including  the  attachment  and  sale  of  seized  assets,  which  are undertaken by Tax Recovery Officers as per provisions laid in the Second Schedule of the Income-tax Act, 1961. Moreover, as per the provisions of the Act, stock-in-trade, found as a result of search, is not seized. Further, any perishable goods are, generally, not seized. CBDT issues OMs and other administrative guidelines from time to time to the field formation for the realization of tax dues through the timely sale of attached/seized assets.

(b):  In view of adequacy of existing provisions, such proposal is under consideration.

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