WINSTON TAN vs UNION OF INDIA

The Supreme Court addressed the forfeiture of property under Section 7 of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA). The Court held that the original owner’s illegal activities justified the forfeiture, despite the subsequent sale of the property to the appellants. The Court emphasized that the appellants could not claim protection as bona fide purchasers since the property was linked to criminal activities under Section 6(1) of SAFEMA, leading to the dismissal of the appeal.