Taking Over the Property of Public Servant : Supreme Court Explains the Law

Taking Over the Property of Public Servant : Supreme Court Explains the Law

In case of State of Bihar v. Sudha Singh [2026] GCtR 249 (SC), dealing with a case of Bihar Special Courts Act, 2009 and Prevention of Corruption Act, 1988, the issue was  whether the confiscated properties in the name of a closed relative/spouse can continue to remain confiscated with the State, upon the death of the public servant?

It was held that the power of confiscation is provided for in Section 15 of the BSCA which postulates that an order for confiscation can be passed by the authorised officer after issuance of notice, consideration of the explanation, if any furnished and opportunity of being heard, being given to the person concerned, that is he who holds the money or properties specified in the notice, or any other person, through whom such money/property may be held. That being the plain position of law, proceedings against the spouse of public servant, cannot be questioned on the ground of lack of authority.

It was held that there is a clear distinction between acquittal and abatement of proceedings. The latter takes place since the death of the accused leaves no other possibility open. It is not a comment on the merits of the matter. In the present case, the death would not let the spouse of public servant ‘off the hook’ since she had been proceeded against for holding the delinquent officer’s, allegedly illegally begotten property right from the time that the authorities became alive to his alleged misdeeds. t is a settled position in law that a non-public servant can be proceeded against when the initial case is registered under Section 13 of PC Act, 1988 by virtue of Section 107 of Indian Penal Code. 

It was also explained that Section 15 of BSCA, 2009 itself provides that confiscation order be made after hearing the delinquent officer or any other person through whom the property or money in question is being held. When it provides that the other person in the equation can also be prosecuted insofar as the illegitimately procured property or money is taken away, the plain requirement is that at the time of initiation of the proceedings the person on whom proceedings under Section 13 of the PC Act are to be initiated, must be alive and noticed about such proceedings. The death of such a person does not extinguish the fact that confiscation order has been made after hearing the parties.