Property accruing by escheat or lapse or as bona vacantia
Article 296 — Property accruing by escheat or lapse or as bona vacantia
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. 297. Things of value within territorial waters or continental shelf and resources of the exclusive economic zone to vest in the Union.—(1) All lands, minerals and other things of value underlying the ocean within the territorial waters, or the continental shelf, or the exclusive economic zone, of India shall vest in the Union and be held for the purposes of the Union.
(2) All other resources of the exclusive economic zone of India shall also vest in the Union and be held for the purposes of the Union. (3) The limits of the territorial waters, the continental shelf, the exclusive economic zone, and other maritime zones, of India shall be such as may be specified, from time to time, by or under any law made by Parliament.]
- Power to carry on trade, etc.—The executive power of the Union and of each State shall extend to the carrying on of any trade or business and to the acquisition, holding and disposal of property and the making of contracts for any purpose: Provided that—
- (a) the said executive power of the Union shall, in so far as such trade or business or such purpose is not one with respect to which Parliament may make laws, be subject in each State to legislation by the State; and
- (b) the said executive power of each State shall, in so far as such trade or business or such purpose is not one with respect to which the State Legislature may make laws, be subject to legislation by Parliament.]
Plain English Summary
This article deals with what happens to property in India that would have belonged to the King or a Ruler of a State if the Constitution hadn't been established, or property that has no rightful owner. Such property either goes to the State where it is located or to the central Union government.
Key Points
- Property that accrues by escheat (inheritance when no heir exists) or lapse (property falling into the state treasury) vests in the respective State or the Union.
- If property is in the possession of the Government of India or a State, it remains with the Union or that State based on how it was used.
- The executive power of the Union and States includes the right to conduct trade, acquire property, and make contracts.
Why It Matters
This article establishes the legal framework for determining ownership of unclaimed property in India and defines the scope of powers regarding trade and property management by both the central and state governments.
Landmark Judgements
No major landmark judgements.