Mohunram and Another v National Director of Public Prosecutions and Others

Mr Kumarnath Mohunram was the sole member of Shelgate Investments CC, which owned immovable property in Vryheid, KwaZulu-Natal. From the premises, Mohunram operated a legitimate glass and aluminium business but also unlawfully operated an unlicensed casino with up to 57 gaming machines, contravening the KwaZulu-Natal Gambling Act 10 of 1996. He was arrested, charged, paid admission-of-guilt fines, forfeited cash found on the premises, and had the gaming machines seized and destroyed. The National Director of Public Prosecutions obtained a preservation order and later sought forfeiture of the immovable property under Chapter 6 of the Prevention of Organised Crime Act 121 of 1998 (POCA), alleging the property was an instrumentality of the gambling offences. The High Court refused forfeiture, but the Supreme Court of Appeal overturned that decision and ordered forfeiture. Mohunram and Shelgate sought leave to appeal to the Constitutional Court.

Condonation for the late filing of the record was granted, and leave to appeal to the Constitutional Court was granted.

The case is significant for clarifying that POCA’s civil forfeiture provisions are not confined to organised crime offences but may apply to a broader range of Schedule 1 offences, subject to constitutional safeguards. It underscores the Constitutional Court’s role in ensuring that forfeiture orders comply with property rights and the principle of proportionality.