Sections 28 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.
Chapter VI deals with what happens to a seized article, currency or security. Section 28 makes it liable to confiscation if it is adjudged to have been received or obtained in contravention of the Act. Section 29 says who adjudges. Section 30 says the person from whom it was seized must first be given a reasonable opportunity to make a representation.
This article reads sections 28 to 30 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.
An article, currency or security seized under section 25 is liable to confiscation if it has been adjudged under section 29 to have been received or obtained in contravention of the Act. The Court of Session adjudges without limit; an officer not below the rank of Assistant Sessions Judge, specified by notification, adjudges within prescribed limits. No order without a reasonable opportunity of making a representation to the person from whom it was seized.
Section 28: liability to confiscation
"Any article or currency or security which is seized under section 25 shall be liable to confiscation if such article or currency or security has been adjudged under section 29 to have been received or obtained in contravention of this Act."
Two conditions have to be met together: the thing must have been seized under section 25 (see the article on sections 25 to 27), and it must have been adjudged under section 29 to have been received or obtained in contravention of the Act. Seizure alone does not make it liable to confiscation; the adjudication does.
Section 29: who adjudges
Section 29(1)
Any confiscation referred to in section 28 may be adjudged:
| Clause | Adjudicating authority | Limit |
|---|---|---|
| (a) | The Court of Session within the local limits of whose jurisdiction the seizure was made | "Without limit" |
| (b) | Such officer, not below the rank of an Assistant Sessions Judge, as the Central Government may specify by notification in the Official Gazette | "Subject to such limits as may be prescribed" |
The clause (b) officer is specified by notification, and the limits are prescribed by rules. The rule that fixes the limit is rule 19, explained in the article on rules 18 and 19; this article does not state what it says. No notification specifying an officer is in the texts consulted, and none is described here. Anything above the limit for the officer is for the Court of Session, because the Court adjudges "without limit". A person facing confiscation proceedings can take advice from our legal dispute resolution practice.
Section 29(2): the order
"When an adjudication under sub-section (1) is concluded by the Court of Session or Assistant Sessions Judge, as the case may be, the Sessions Judge or Assistant Sessions Judge may make such order as he thinks fit for the disposal by confiscation or delivery of seized article or currency or security, as the case may be, to any person claiming to be entitled to possession thereof or otherwise, or which has been used for the commission of any offence under this Act."
The order has two possible outcomes on the words: confiscation, or delivery to a person claiming to be entitled to possession. The section also reaches a seized thing "which has been used for the commission of any offence under this Act". The text gives the judge a broad discretion ("such order as he thinks fit"). Note that the sub-section speaks of the "Sessions Judge or Assistant Sessions Judge" while sub-section (1)(a) speaks of the "Court of Session"; read the text as printed.
The link to the seizure procedure is section 26(6): the officer who prepares the inventory reports the seizure "forthwith" to the Court of Session or Assistant Sessions Judge having jurisdiction for adjudging the confiscation under section 29.
Section 30: a reasonable opportunity
"No order of adjudication of confiscation shall be made unless a reasonable opportunity of making a representation against such confiscation has been given to the person from whom any article or currency or security has been seized."
The protection has three features. It applies to "the person from whom" the thing was seized, so that person is the one to be heard. The opportunity is of "making a representation against such confiscation". And it is a pre-condition: "no order" may be made without it. The Act does not say how much time must be given or in what form; the word "reasonable" governs.
A person who gets a notice should therefore:
- read what is alleged and the date for the representation;
- gather proof of how the article, currency or security was received, from whom, and for what purpose;
- make a written representation within the time given and ask to be heard; and
- keep a copy of everything filed.
Example (invented). A foreign-currency bundle is seized from Mr. Salim Qureshi under section 25 and the seizure is reported to the Court of Session. Before any confiscation order the court must give Mr. Qureshi a reasonable opportunity of making a representation. If it then adjudges that the currency was received in contravention of the Act, section 28 makes it liable to confiscation, and the court may order confiscation or delivery to a person who shows he is entitled to possession.
After the order
An order made under section 29 can be appealed under section 31(1): where the Court of Session made the order, to the High Court to which the Court is subordinate; where an officer under section 29(1)(b) made it, to the Court of Session within the local limits of whose jurisdiction the order was made, within one month from the date of communication of the order, with a power to allow a further one month on sufficient cause. See the article on section 31.
Where an article, currency or security is not available for confiscation, section 36 lets the court trying the offence impose an additional fine on conviction; see the article on sections 35 and 36.
Need help with a confiscation proceeding?
Confiscation proceedings turn on proof of how an item was received. For help preparing the representation and records, contact our legal dispute resolution team as soon as the notice or the seizure report reaches you.
Key takeaways
- Section 28 makes a seized article, currency or security liable to confiscation once it is adjudged under section 29 to have been received or obtained in contravention of the Act.
- The Court of Session adjudges without limit; an officer not below the rank of Assistant Sessions Judge, specified by notification, adjudges within prescribed limits.
- The order may be confiscation or delivery to a person entitled to possession.
- Section 30 bars any order without a reasonable opportunity to make a representation to the person from whom the item was seized.
- Appeal lies under section 31(1).
Read next
- Sections 25 to 27: seizure and disposal
- Section 31: appeal
- Section 32: revision of orders by the Central Government
- Rules 18 and 19: election candidates and the limit for confiscation
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.