Section 18 in The Jammu And Kashmir Public Security Act, 2003
18. Power to forfeit funds of an unlawful association
(1)Where the Government is satisfied, after such inquiry as it may think fit, that any moneys, securities or credits are being used or are intended to be used for the purposes of an unlawful association, the Government may, by order in writing, declare such moneys, securities or credits to be forfeited to the Government.(2)A copy of an order under sub-section (1) may be served on the person having custody of the moneys, securities or credits, and on the service of such copy, such person shall pay or deliver the moneys, securities or credits to the order of the Government:Provided that in the case of moneys or securities, a copy of the order may be endorsed for execution to such officer as the Government may select, and such officer shall have power to enter upon and search for such moneys and securities in any premises where they may reasonably be suspected to be, and to seize the same.(3)Where the Government has reason to believe that any person has custody of any moneys, securities or credits which are being used or are intended to be used for the purposes of an unlawful association, the Government may, by order in writing, prohibit such person from paying, delivering, transferring or otherwise dealing in any manner whatsoever with the same, save in accordance with the written orders of the Government. A copy of such order shall be served upon the person to whom it is directed.(4)The Government may endorse a copy of an order under sub-section (3) for investigation to any officer it may select, and such copy shall be warrant where-under such officer may enter upon any premises of the person to whom the order is directed, examine the books of such person, search for moneys and securities and make inquiries from such person, or any officer, agent or servant of such person, touching the origin of dealings in any moneys, securities or credits which the investigating officer may suspect are being used or are intended to be used for the purposes of an unlawful association.(5)A copy of an order under this section may be served in the manner provided in the Code for the service of a summons, or, where the person to be served is a corporation, company, bank or association of persons, it may be served on any secretary, director or other officer or person concerned with the management thereof, or by leaving it or sending it by post addressed to the corporation, company, bank or association at its registered office, or where there is no registered office at the place where it carries on business.(6)Where on order of forfeiture is made under sub-section (1) in respect of any moneys, securities or credits in respect of which a prohibitory order has been made under sub-section (3), such order of forfeiture shall have effect from the date of the prohibitory order, and the person to whom the prohibitory order was directed shall pay or deliver the whole of the moneys, securities, or credits forfeited to the order of the Government.(7)Where any person liable under this section to pay, or deliver any moneys, securities, or credits to the order of the Government, refuses or fails to comply with any direction of the Government in this behalf, the Government may recover from such person, as arrears of land revenue or as a fine, the amount of such moneys or credits of the market value of such securities.(8)In this section, "security" means a document whereby any person acknowledges that he is under a liability, to pay money, or whereunder any person obtain a legal right to the payment of money; and the "market value of any security" means the value as fixed by any officer or person deputed by the Government in this behalf.
