One of the chief instruments of policy
against smugglers, narco-terrorists,
drug-traffickers and foreign exchange
manipulators is forfeiture of their
illegally acquired properties. It
has been realised worldwide that forfeiture
of properties is a very major deterrent
to these activities. Therefore, Government
of India enacted in 1976, the Smugglers
and Foreign Exchange Manipulators
(Forfeiture of Property) Act,1976,
with the objective of preventing smuggling
activities and foreign exchange manipulations
by depriving the persons engaged in
such activities of their ill-gotten
wealth. Later on, in 1985, Chapter
V-A was added to Narcotics Drugs &
Psychotropic Substances Act (NDPSA
1985) with the same objective in respect
of narcotic and illicit
drug
traffickers. 
