(1) Where the State Government issatisfied, after such inquiry as it may think fit, that any monies, securities or credits are being used or areintended to be used for the purposes of an unlawful association, the State Government may, by order inwriting, declare such monies, securities or credits to be forfeited to Government.
(2) A copy of an order under sub-section (1) may be served on the person having custody of themonies, securities or credits, and on the service of such copy such person shall pay or deliver the monies,securities or credits to the order of the State Government:
Provided that, in the case of monies or securities, a copy of the order may be endorsed for executionto such officer as the State Government may select, and such officer shall have power to enter upon andsearch for such monies and securities in any premises where they may reasonably be suspected to be, andto seize the same.
(3) Before an order of forfeiture is made under sub-section (1) the State Government shall givewritten notice to the person (if any) in whose custody the monies, securities or credits are found of its intention to forfeit, and any person aggrieved thereby may within fifteen days from the issue of suchnotice file an application to the District Judge in a district, or to the Chief Judge of the Small Cause Courtin a presidency-town, to establish that the monies, securities or credits or any of them are not liable toforfeiture, and if any such application is made, no order of forfeiture shall be passed in respect of themonies, securities or credits concerned until such application has been disposed of, and unless the DistrictJudge or Chief Judge of the Small Cause Court has decided that the monies, securities or credits are liableto forfeiture.
(4) In disposing of an application under sub-section (3) the procedure to be followed shall be theprocedure laid down in the Code of Civil Procedure, 1908 (5 of 1908), for the investigation of claims sofar as it can be made to apply, and the decision of the District Judge or Chief Judge of the Small CauseCourt, as the case may be, shall be final.
(5) Where the State Government has reason to believe that any person has custody of any monies,securities or credits which are being used or arc intended to be used for the purposes of an unlawfulassociation, the State 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 thewritten orders of the State Government. A copy of such order shall be served upon the person to whom itis directed.
(6) The State Government may endorse a copy of an order under 1[Sub-section] (5) for investigationto any officer it may select, and such copy shall be warrant where under such officer may enter upon anypremises of the person to whom the order is directed, examine the books of such person search for moniesand securities, and make inquiries from such person, or any officer, agent or servant of such person,touching the origin of and dealings in any monies securities or credits which the investigating officer maysuspect arc being used or are intended to be used for the purposes of an unlawful association.
(7) A copy of an order under this section may be served in the-manner provided in the Code ofCriminal Procedure, 1898 (5 of 1898), for the service of a summons, or, where the person to be served isa corporation, company, bank or association of persons, it may be served on any secretary, director orother officer or person concerned with the management thereof, or by leaving it or sending it by postaddressed to the corporation, company, bank or association at its registered office, or, where there is noregistered office, at the place' where it carries on business.
(8) Where an order of forfeiture is made under sub-section (1) in respect of any monies, securities orcredits in respect of which a prohibitory order has been made under 1[sub-section (5)], such order offorfeiture shall have effect from the date of the prohibitory order, and the person to whom the prohibitoryorder was directed shall pay or deliver the whole of the monies, securities, or credits forfeited, to the orderof the State Government.
(9) Where any person liable under this section to pay or deliver any monies, securities, or credits tothe order of the State Government refuses or fails to comply with any direction of the State Governmentin this behalf, the State Government may recover from such person, as arrears of land-revenue or as afine, the amount of such monies or credits or the market value of such securities.
(10) In this section, "security" includes a document whereby any person acknowledges that he isunder a legal liability to pay money, or where under any person obtains a legal right to the payment ofmoney; and the market value of any security means the value as fixed by any officer or person deputed bythe State Government in this behalf.
(11) Except so far as is necessary for the purposes of any proceeding under this section, noinformation obtained in the course of any investigation made under sub-section (6) shall be divulged byany officer of Government, without the consent of the State Government.