(1) No Court shall take cognizance of any offence punishable under this Act, except on a report in writing of the facts constituting such offence made by the person aggrieved by such offence or by a person who is a public servant as defined in section 21 of the Indian Penal Code.
(2) The public servant aforesaid may, either before or after the institution of any proceedings for any offence punishable under this Act, accept from any person charged with such offence by way of composition of the offence a sum of money not exceeding one thousand rupees, and direct the release of any property which has been seized as liable to forfeiture under this Act on payment of the value thereof as estimated by him.
(3) On payment by such person of such sum of money, or such value or both, as the case may be, such person if in custody shall be set at liberty and if any proceedings have been instituted against such person in any Criminal Court, the composition shall be deemed to amount to an acquittal and in no case shall any further proceedings be taken against such person or property in respect of the same offence.