Article 296

Property Accruing by Escheat, Lapse, or Bona Vacantia

Official heading: “Property accruing by escheat or lapse or as bona vacantia”

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Source edition: The Constitution of India (as on 1 May 2026)
Source locator: Part XII, Article 296, printed page 173
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1. In One Sentence

Provides that property accruing by escheat, lapse, or as ownerless property (bona vacantia) vests in the State where located, or in the Union if located in a Union Territory or related to Union functions.

2. What It Means in Everyday Language

Article 296 codifies the traditional sovereign doctrine of escheat and bona vacantia in constitutional terms.

When an individual dies intestate (without a will) leaving no legal heirs, or when property is abandoned with no rightful owner, that property accrues to the sovereign.

Under Article 296, any property in India that would have accrued to His Majesty by escheat, lapse, or as bona vacantia (ownerless goods) now vests in the State if situated in a State.

If the property was used for Union purposes or is situated in a Union Territory, it vests in the Union of India.

In Pierce Leslie & Co. Ltd. v. Violet Ouchterlony Wapshare (1969), the Supreme Court affirmed that upon the dissolution of a company, its remaining unclaimed assets vest in the sovereign as bona vacantia under Article 296.

3. Practical Illustrative Example

Everyday Scenario:

A landowner in Jaipur dies with no surviving heirs, relatives, or will, leaving behind an ancestral urban house and agricultural lands.

Core takeaway: Under Article 296, the doctrine of escheat applies: the ownership of the abandoned estate vests lawfully in the State of Rajasthan.

Illustrative Notice: The State cannot arbitrarily seize property alleging escheat; it must follow statutory administrative procedures and prove the complete absence of lawful heirs.

4. Important Limits, Qualifications & Exceptions

Article 296 ensures that no property in India remains permanently ownerless.

Escheat & lapse: Applies when a person dies intestate without any heirs under personal succession laws.
Bona vacantia: Encompasses unclaimed assets, dissolved company remnants, and abandoned funds.
Territorial vesting: Vests in the State where situated, or in the Union if in a Union Territory or held for Union purposes.

5. Operative Constitutional Text

Subject as hereinafter provided, any property in the territory of India which, if this Constitution had not come into operation, would have accrued to His Majesty or, as the case may be, to the Ruler of an Indian State by escheat or lapse, or as bona vacantia for want of a rightful owner, shall, if it is property situate in a State, vest in such State, and shall, in any other case, vest in the Union: Provided that any property which at the date when it would have so accrued to His Majesty or to the Ruler of an Indian State was in the possession or under the control of the Government of India or the Government of a State shall, according as the purposes for which it was then used or held were purposes of the Union or of a State, vest in the Union or in that State. Explanation.—In this article, the expressions “Ruler” and “Indian State” have the same meanings as in article 363.

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6. Sources & Historical Assembly Deliberations

Assembly quotations are withheld until wording, dates, and attribution have been checked against the primary record.

Sources & Citation Metadata

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Constitutional TextThe Constitution of India (as on 1 May 2026)Cited PDF page
Government of India (Legislative Department, Ministry of Law and Justice) • Part XII, Article 296, printed page 173 • Human source-link check pending
Primary PDF accessed and transcribed with AI assistance on 14 October 2026. Formatting and amendment annotation markers are omitted; operative wording is retained. This is not human legal review. Later amendments and commencement notifications have not been comprehensively checked.

Human legal review is pending; compare the text with the cited editionNon-partisan educational resource