Sections 25 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Where something received in breach of the Act is in a person's hands, the Act provides three connected steps. Section 25 says who may seize it. Section 26 sets out how the seized article, currency or security is listed, certified and reported. Section 27 applies the Code of Criminal Procedure, 1973 to all seizures under the Act. Confiscation itself is the subject of sections 28 to 30.
This article reads sections 25 to 27 as per the Act as enacted, read with the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020), which did not change these sections. Later amendments should be checked.
A gazetted officer authorised by the Central Government who has reason to believe a person has in his possession or control an article exceeding the value specified in section 2(1)(h)(i), or currency or security, in relation to which the Act has been or is being contravened, may seize it. The seized thing is forwarded to a specified officer, who prepares an inventory and applies to a Magistrate to certify it; the certified inventory is primary evidence; the seizure is reported to the Court of Session or Assistant Sessions Judge for confiscation under section 29.
Section 25: who may seize and what
"If any gazetted officer, authorised in this behalf by the Central Government by general or special order, has any reason to believe that any person has in his possession or control any article exceeding the value specified in sub-clause (i) of clause (h) of sub-section (1) of section 2 or currency or security whether Indian or foreign, in relation to which any provision of this Act has been or is being, contravened, he may seize such article or currency or security."
| Element | Text |
|---|---|
| Who | A gazetted officer authorised by the Central Government by general or special order |
| Belief | "Reason to believe" |
| What | An article exceeding the value specified in section 2(1)(h)(i), or currency or security, Indian or foreign |
| Link to the Act | In relation to which a provision of the Act has been or is being contravened |
| Power | May seize |
The article limb ties to the value in the definition of foreign contribution; the value is fixed by rules, and how the definition reads is explained in the article on foreign contribution and foreign hospitality. Currency and security are covered whatever their amount. This seizure is of things; seizure of accounts or records after inspection is a different power under section 24, explained in the article on sections 23 and 24. If an officer seizes cash or goods from your premises, speak to our legal dispute resolution team the same day.
Section 26: what happens after seizure
Section 26(1): notified items and their disposal
The Central Government "may, having regard to the value of article or currency or security, their vulnerability to theft or any relevant consideration, by notification, specify such article or currency or security which shall, as soon as may be after their seizure, be disposed of by such officer and in such manner, as the Central Government may, from time to time, determine after following the procedure hereinafter specified." So early disposal applies to what the Government specifies by notification, taking into account value and vulnerability to theft. No such notification is in the texts consulted and none is described here.
Section 26(2): forwarding
The article or currency or security seized "shall be forwarded without unnecessary delay to such officer as may be specified".
Section 26(3): inventory and Magistrate
Where it has been seized and forwarded, the officer referred to in sub-section (1) "shall prepare an inventory of such article or currency or security containing such details relating to their description, value or such other identifying particulars as the officer ... may consider relevant to the identity" of the article, currency or security, "and make an application to any Magistrate for the purposes of certifying the correctness of the inventory so prepared".
Section 26(4): the Magistrate allows
"Where an application is made under sub-section (2), the Magistrate shall, as soon as may be, allow the application." A drafting slip: the application to a Magistrate is described in sub-section (3), not sub-section (2). The slip is in the Act's own text; it is quoted as printed and not corrected.
Section 26(5): primary evidence
"Notwithstanding anything contained in the Indian Evidence Act, 1872 or the Code of Criminal Procedure, 1973, every court trying an offence under this Act, shall treat the inventory, as certified by the Magistrate, as primary evidence in respect of such offence." The Act as enacted cites the 1872 and 1973 enactments; the reader should check the current law for the corresponding provisions, and no replacement is named here. The practical point is the one in the text: a certified inventory is primary evidence of the offence.
Section 26(6): report to the Court of Session
"Every officer acting under sub-section (3) shall forthwith report the seizure to the Court of Session or Assistant Sessions Judge having jurisdiction for adjudging the confiscation under section 29." The report is the step that connects seizure to adjudication; see the article on sections 28 to 30.
Section 27: the Code of Criminal Procedure
"The provisions of the Code of Criminal Procedure, 1973 shall apply in so far as they are not inconsistent with the provisions of this Act to all seizures made under this Act." The marginal note speaks of seizure "in accordance with Act 2 of 1974". Section 27 fills gaps: where the FCRA is silent, the Code's rules on seizures apply unless they are inconsistent with the FCRA. Check the current law for the corresponding provisions.
Example (invented). An authorised gazetted officer has reason to believe that Mr. Rajan Iyer holds a bundle of foreign currency received in breach of the Act, and seizes it under section 25. It is forwarded to the specified officer, who prepares an inventory of the currency with its description and value and applies to a Magistrate to certify it. The Magistrate allows the application as soon as may be. The officer reports the seizure forthwith to the Court of Session having jurisdiction, for adjudging confiscation. At trial the certified inventory is treated as primary evidence.
What the holder should do
Ask for a written list of what was taken, note the officer's authority, and keep your own record of the items. Because the inventory certified by the Magistrate becomes primary evidence, check the inventory for accuracy as early as you can, and raise any error promptly with advice. A prohibitory order under section 10 and a seizure under section 25 are separate tools: the first stops dealing, the second takes the thing; see the article on section 10.
Need help after a seizure?
A seizure moves quickly into an inventory, a court and an adjudication. Reach our legal dispute resolution practice with the seizure memo, the inventory and the background of the receipt.
Key takeaways
- Section 25 lets an authorised gazetted officer, with reason to believe, seize an article above the specified value, or currency or security, in relation to which the Act is contravened.
- Section 26 requires forwarding, an inventory, Magistrate certification and a report to the Court of Session or Assistant Sessions Judge.
- A certified inventory is primary evidence in a trial under the Act.
- Section 27 applies the Code of Criminal Procedure, 1973 to all seizures so far as not inconsistent.
- Section 26(4) refers to "sub-section (2)" where sub-section (3) is meant; the slip is in the Act.
Read next
- Sections 23 and 24: inspection and seizure of accounts or records
- Sections 28 to 30: confiscation and who adjudges it
- Section 31: appeal
- Section 10: prohibitory order
Disclaimer: Based on the Foreign Contribution (Regulation) Act, 2010 as enacted, read with the Amendment Act, 2020 and the other amendments named in this article, and on the Foreign Contribution (Regulation) Rules, 2011 as amended by the notifications named (latest consulted: S.O. 3272(E) dated 22 June 2026), as consulted on 2 October 2026. No consolidated official text was available; some provisions rest on a third-party copy and are identified as such. Later amendments, notifications and Ministry of Home Affairs orders should be checked. This article is general information, not legal advice; check the official text before acting.