The government is planning to introduce new rules for seizure of properties, including immovable properties, owned by proscribed organisations or proscribed persons. Sources told Business Recorder here on Tuesday that the Anti-Terrorism (Freezing and Seizure) Rules, 2018 would deal with the freezing of such properties of proscribed organisations/persons. The rules would be finalised in consultation with relevant government departments.
The government has proposed constitution of review committees to provide legal forum to the proscribed organisations or proscribed persons, for filing of appeals against seizure of their properties including immovable properties, owned by such persons/ organisations.
The rules said that a proscribed organisation or proscribed person feeling aggrieved by any order under these rules may within thirty days of communication of the order, prefer an appeal to the review committee constituted by the government, which may pass order on the appeal within thirty days of receipt of the appeal after providing to the appellant the opportunity of personal hearing.
According to the draft Anti-Terrorism (Freezing and Seizure) Rules, 2018, any person in effective control of any property of a proscribed organisation or proscribed person, shall freeze or seize such property without delay. The obligation to freeze and seize shall commence from the date of publication of the proscription order relating to a proscription organisation or proscription person, in the official gazette.
The properties liable to be frozen or seized under the Anti-Terrorism Act, 1997 includes the properties owned or controlled wholly or partly, directly or indirectly, by a proscribed organisation or proscribed person. The property owned or effectively controlled by any person acting on behalf of or at the direction of any proscribed organisation or proscribed person.
The properties liable to be frozen or seized also included income, rents, profits, returns and any other increase or addition to such properties.
The seizing agency shall act as the caretaker of the properties frozen or seized by it until further directions are issued by the authority.
As and when a property is frozen or seized, no further use, transfer, conversion, disposal, removal or dealing of such property shall take place except with prior written approval of the authority or with the order of competent court of law, rules said.
About the responsibility of seizing agency etc, the rules said that the seizing agency carrying out the freeze or seizure of a property shall submit a report as set out in format A to authority within forty eight hours of the freezing or seizure and attach with the report copies of any documents in its possession concerning the property that has been frozen or seized.
Within forty eight hours of receipt of the report under clause 6, the seizing agency shall issue a notice of freezing or seizure of the property to the concerned proscribed organisation or proscribed person and any other person affected by the freezing or seizure of the property, rules said.
The rules said that any money, cash, instruments and articles of value seized shall be deposited for safe custody with a banks or financial institutions designated by seizing agency and such bank shall issue a proper receipt for the money, instruments and articles of value so deposited.
Any money or articles of value deposited with the banks or financial institutions or placed in their safe lockers shall be frozen and no further dealings or transactions shall be made with respect to such money or articles, without prior permission of the authority or order of a competent court of law.
The seizing agency may receive any profit, interest, income, return, earning or other addition relating to such property, which shall also be subjected to freezing or seizure, as the case may be, on receipt.
The rules said that a debt or other payment, obligation, securities owed to a proscribed organisation or a proscribed person shall only be paid for the benefit of such organisation or person on permission by the authority or court order.
Freezing by Non-Banking Finance Companies, etc: A corporate entity, including non-banking finance companies, stock exchange, clearing house, or a depository company shall freeze and shall not transfer any securities or any other instrument of investment of a proscribed organisation or a proscribed person provided that any dividend, profit, return or bonus shares shall accrue and shall not be paid to the owners of such shares except with prior written approval of the authority.
The seizing agency shall not deliver possession of a movable property to the proscribed organisation or proscribed person and shall be responsible for the due custody, thereof provided that when the property seized is perishable or subject to speedy and natural decay, such seizing agency may sell or auction it at once with permission of the authority and submit a report about details of the sale to the authority.
The rules said that an immovable property shall be frozen by way of avoiding or restraining the transfer of, or creation of an encumbrance over, such property.
The rule also deals with the exemption from asset freeze. A proscribed organisation or proscribed person may submit written application to the authority, for access to such services, money or other properties frozen or seized include family subsistence depending upon size of the family. The services included foodstuffs; rent or mortgage; medicines and medical treatment; taxes; insurance premiums; public utility charges; reasonable professional fees for the provision of legal services; fees or service charges for routine holding or maintenance of frozen funds or other financial assets or economic resources.
The application for access to money or other properties frozen shall specify the types of expenses or payments for which exemption from freezing or seizure is sought, the total amount of money or other property required for the purpose and full details to substantiate the need for such money or other property.
The access to money or other properties may be granted by the authority subject to any general or special conditions.
The provisions of these rules shall be in addition to and not in derogation of any other provisions on attachment, seizure or confiscation of properties provided under the Code of Criminal Procedure, 1898 or any other law for the time being in force.
No suit, prosecution or other legal proceedings shall lie against any person in respect of anything which is in good faith done or intended to be done under the Anti-Terrorism Act, 1997 and rules made thereunder.
The authority may set up a fund or enter into an arrangement to manage, preserve, recover or dispose of the properties frozen or seized pursuant to the Act and issue such directions and exercise such powers as may be necessary for proper management, preservation, recovery or disposal of the property, draft rules added.