SAFEMA Tribunal rejects claim over seized vehicle, ruling unregistered purchaser lacks legal standing and failed to prove legitimate acquisition funds.
No Standing for Unregistered Buyer in NDPS Asset Challenge
The SAFEMA Tribunal has dismissed a claim against the freezing of a vehicle under the NDPS Act, holding that the petitioner, despite claiming to be the purchaser, was not the registered owner and failed to prove lawful source of acquisition funds.
The Tribunal observed that
"beneficial ownership cannot be claimed in isolation from legal and documentary ownership, especially when the vehicle remains registered in another person’s name."The transaction lacked sale deed, payment records, and GST invoice. The burden under Section 52 of the NDPS Act remained unmet.
This decision reinforces that claimants challenging confiscation must establish both title and legitimate origin of funds. Legal advisors should caution clients against informal asset acquisitions, particularly high-value movable property.
Citations
- NDPS Act, 1985, Section 52
