The Telangana Escheats and Bona Vacantia Act, 1974.

THE TELANGANA ESCHEATS AND BONA VACANTIA ACT, 1974. 
(ACT NO. 35 OF 1974) 
ARRANGEMENT OF SECTIONS 
Sections 
 CHAPTER-I 
PRELIMINARY 
1. Short title, extent and commencement. 
2. Definitions. 
 CHAPTER-II 
GENERAL 
3. Ownership of property accruing by escheat or 
lapse or as bona vacantia. 
4. General superintendence of escheats and bona 
vacantia. 
5. Local officers. 
6. Powers of disposal of escheat or bona vacantia. 
 CHAPTER-III 
DECLARATION OF PROPERTY AS AN ESCHEAT 
OR A Bona Vacantia AND ITS DISPOSAL 
7. Inquiry relating to escheat or bona vacantia by 
local officer. 
8. Local officer to institute a suit for recovery of 
possession of escheat or bona vacantia when the 
person in possession resists. 
9. Local officer to take into custody and to arrange 
for care and maintenance of property which is not 
in the possession of any person or its possession 
is surrendered. 
 
2  [Act No. 35 of 1974] 
10. Disposal by local officer of property in certain 
cases. 
11. Procedure for declaring property to be escheat or 
bona vacantia. 
12. Publication of declaration. 
13. Immovable property escheated to Government 
not to be sold until twelve years after such 
escheat. 
 CHAPTER-IV 
MOVABLE PROPERTY FOUND IN A PUBLIC 
PLACE. 
14. Disposal of movable property found in a public 
place. 
 CHAPTER-V 
MISCELLANEOUS 
15. Delegation of power. 
16. Power to make rules. 
17. Repeal and saving. 
 
THE TELANGANA ESCHEATS AND BONA VACANTIA  
ACT, 1974.1 
 
ACT No. 35 OF 1974. 
 
CHAPTER-I 
PRELIMINARY 
 
1. (1) This Act may be called the 2Telangana Escheats 
and Bona Vacantia Act, 1974. 
 
 (2) It extends to the whole of the 2State of Telangana. 
 
 (3) It shall come into force on such date as the 
Government may, by notification, appoint. 
 
2. In this Act, unless the context otherwise requires,- 
 
 (i) “bona vacantia ” includes any  property, situated in 
the State, of which there is no rightful owner, but does not 
include an escheat or any movable property found in a 
public place; 
 
 (ii) “competent authority ” means the chief controlling 
authority specified in section 4; 
 
 (iii) “court” means any civil court of competent 
jurisdiction; 
 
                                                           
1. The Andhra Pradesh Escheats and Bona Vacantia Act, 1974 receive d 
the assent of the Governor on 07.09.1974. The said Act in force in the 
combined State, as on 02.06.2014, ha s been adapted to the State of 
Telangana, under section 101 of the Andhra Pradesh Reorganisation 
Act, 2014 (Central Act 6 of 2014) vide. the Telangana Adaptation of Laws 
Order, 2016, issued in G.O.Ms.No.45, Law (F) Department, dated 
01.06.2016. 
2. Substituted by G.O.Ms.No.45, Law (F) Department, Dated 01.06.2016. 
Short title, extent 
and 
commencement. 
Definitions. 
2  [Act No. 35 of 1974] 
 (iv) “escheat” means any proper ty the owner of which 
dies intestate and without leaving legal heir; 
 
 (v) “Government” means the State Government; 
 
 (vi) “local officer” means the of ficer appointed under 
section 5; 
 
 (vii) “notification” means a notifica tion published in the 
3Telangana Gazette ; and the word “notified” shall be 
construed accordingly; 
 
 (viii) “prescribed” means prescribed by rules made by 
the Government under this Act. 
 
CHAPTER-II 
GENERAL 
 
3. All property situated in the State, which is vested in the 
State by escheat or lapse or as bona vacantia  for want of a 
rightful owner, s hall belong  to the Government and the 
Government shall be the owner of all such property. 
 
4. Subject to the general or special orders of the 
Government, the general superi ntendence o f all escheat 
and bona vacantia  shall be vested in the  Board of Revenue 
or in such other officer or authority as may be empowered 
by the Government in this  behalf, who shall be the chief 
controlling authority in  all matters connected with the 
administration of escheats and bona vacantia under this Act. 
 
5. (1) The Government may, by notification, appoint the 
District Collector or such other officers as they may deem fit, 
to be the local officers for each district, to exercise the 
powers and perform the functions assigned by or under this 
                                                           
3. Substituted by G.O.Ms.No.45, Law (F) Department, Dated 01.06.2016. 
Ownership of 
property accruing 
by escheat or 
lapse or as bona 
vacantia. 
General 
superintendence 
of escheats and 
bona vacantia. 
Local officers. 
[Act No.35 of 1974]  3 
Act, subject to the general control and directions of the 
competent authority. 
 
 (2) The Government may, by notification, appoint such 
number of other officers as may be necessary for the 
purposes of this Act, to assist the local officer. 
 
6. (1) Save as otherwise provided in this Act,  an escheat 
or a bona vacantia may be disposed of- 
 
  (a) by the Government irrespective of its value; 
 
  (b) by the competent  authority, where its value does  
not exceed ten thousand rupees; 
 
  (c) by the local officer, where its value does  not 
exceed two thousand rupees; 
 
 (2) The power to dispose of an escheat or bona 
vacantia under sub-section (1) shall include the powers,- 
 
  (i) to decide whether the claim of the Government 
should be asserted and the property taken into custody; 
 
  (ii) to make equitable disposition of pro perty which 
devolves by escheat; 
 
  (iii) to take charge of the property to which the claim 
of the Government has been asserted and to arrange for its 
care and maintenance during the period when it is in their 
custody. 
 
 
 
 
 
 
Powers of 
disposal of 
escheat or bona 
vacantia. 
4  [Act No. 35 of 1974] 
CHAPTER-III 
DECLARATION OF PROPERTY AS AN ESCHEAT OR A 
Bona Vacantia AND ITS DISPOSAL 
 
7. Whenever the local officer recei ves information  from 
any source that any property of the nature of an escheat or 
a bona vacantia is situated or lying within his jurisdiction, he 
shall cause an inquiry to be made in respect thereof. 
 
8. (1) Where, as a result of the inquiry under section 7, the 
local officer is satisfied that the property  of the nature of an 
escheat or a bona vacantia is in the possession of a person 
who has no authority to claim it and if such person resists to 
surrender such posse ssion on demand, the local officer 
may, after obtaining the sanction of the competent authority, 
institute a suit in a court for declaration of the Government ’s 
right to the propert y and for recovery of possession of  such 
property. 
 
 (2) Where the court has declared that the property is an 
escheat or a bona vacantia, the local officer shall obtain the 
possession thereof through the court and manage it or 
dispose it of in such manner as may be prescribed. 
 
9. Where the property of the nature of an escheat  or a 
bona vacantia is not in the possession of any person or 
where the person in possession surrenders such 
possession when demanded, the local officer shall take the 
property into his custody and arrange  for its  care and 
maintenance until the claim is settled under section 11. 
 
 
 
 
 
 
Inquiry relating to 
escheat or bona 
vacantia by local 
officer. 
Local officer to 
institute a suit for 
recovery of 
possession of 
escheat or bona 
vacantia when the 
person in 
possession 
resists. 
Local officer to 
take into custody 
and to arrange for 
care and 
maintenance of 
property which is 
not in the 
possession of any 
person or its 
possession is 
surrendered. 
[Act No.35 of 1974]  5 
10. (1) The local officer shall prepare on the site  and in the 
presence of not less than five respectable  persons o f the 
locality, an inventory o f the property  taken into his custody 
under section 9 and forthwith  send a report in the 
prescribed form to the competent authority, together with a 
copy of the inventory. 
 
 (2) Where such property is an immovable property, the 
leasehold, right thereof shall be sold by public auction b y 
such revenue authority and after following such procedure 
as may be prescribed and the sale proceeds shall be held in 
deposit, after deducting therefrom the expenses of the sale. 
 
 (3) (a) Where the property taken into custody under 
section 9, or any part thereof is perishable or involves 
considerable expenditure for it s protection or for any other 
reason the immediate sale thereof is considered expedient 
by the local officer, he may for reasons to be recorded in 
writing, order the disposal of the prop erty or part thereof by 
public auction in the manner prescribed, the sale proceeds 
being held in deposit, after deducting therefrom the 
expenses of the sale. 
 
  (b) Where the property taken into custody under 
section 9 is movable property of the value not exceeding 
fifty rupees, the local officer shall cause it to be sold by 
public auction in the manner prescribed, and  credit the sale 
proceeds thereof to the Government. 
 
11. (1) As soon as m ay be after the property is  taken into 
his custody under section 9, the local officer shall publish a 
notice in such manner as may be prescribed, calling upon 
the persons who may have any claim to such property to 
prefer their claims to such  property in the prescribed form 
within three months  from the date of publication of the 
notice. 
 
Disposal by local 
officer of property 
in certain cases. 
Procedure for 
declaring property 
to be escheat or 
bona vacantia 
6  [Act No. 35 of 1974] 
 (2) If no claim is preferred within the said period of 
three months, the local officer shall declare the property in 
respect of which the notice is published  under sub-section 
(1) to be an escheat or a bona vacantia, as the case may be, 
and dispose it of in such manner as may be prescribed. 
 
 (3) (a) If any person prefers a claim within the said 
period of three months, the local officer shall refer the claim 
to the court for its decision as to whether or not the person 
making the claim is entitled to the property; and the court 
shall, after giving a notice to the local officer and to the 
claimant, decide the reference, as if it were a suit; 
 
  (b) Where the court dec ides that the property taken 
into custody unde r section 9 or any part thereof rightfully 
belongs to th e claimant, the local officer shall deliver the 
same to him; and where the court decides that it does not 
belong to the claimant ’ the court shall declare the property 
to be an escheat or a bona vacantia as the case may be. 
 
12. As soon as a declaration is made by the local  officer 
under sub -section (2) of section II or by the  court under 
clause (b) of sub -section (3) of that section, the local officer 
shall publish a notification thereof in the 4Telangana Gazette 
and in a local newspaper of the district where the property is 
situated or lies, and shall also cause an announcement of 
the declaration to be made by beat of drum in  the village in 
which the property is situated or lies. 
 
13. Notwithstanding anything in this Act, no  immovable 
property which is declared escheat or  bona vacantia shall 
ordinarily be alienated by sale or  grant until it has been in 
the possession of the Government for twelve years. 
 
 
                                                           
4. Substituted by G.O.Ms.No.45, Law (F) Department, Dated 01.06.2016. 
Publication of 
declaration. 
Immovable 
property 
escheated to 
Government not 
to be sold until 
twelve years after 
such escheat. 
[Act No.35 of 1974]  7 
CHAPTER-IV 
MOVABLE PROPERTY FOUND IN A PUBLIC PLACE. 
 
14. (1) Any movable property which is found in a public 
place, and the owner of which is not known,  shall be the 
property of the finder as against every one exc ept the true 
owner. 
 
 (2) If, the finder so desires he may handover,  any 
movable property so found, to the officer incharge of the 
nearest police station who shall retain  the same in his 
custody and shall at once furnish a  report regarding such 
property together with an inventory thereof to the Chief 
Metropolitan Magistrate in the metropolita n area of 
Hyderabad and elsewhere, to the Judicial Magistrate of the 
first class having jurisdiction. 
 
 (3) On receipt of a report under sub -section (2), the 
Magistrate concerned shall make such order  as he thinks fit 
respecting the disposal of such  property or the delivery of 
such property to the person enti tled to the possession 
thereof as if it were a property  taken over by the Police 
under section 51 of the Code of Criminal Procedure, 1973. 
 
 Explanation.- For purposes of this section, th e term 
moveable property does not include the  treasure as defined 
in clause (b) of section 3 of t he Indian Treasure Trove Act, 
1878. 
 
CHAPTER-V 
MISCELLANEOUS 
 
15. Notwithstanding anything in this Act, the Government 
may delegate their power to dispose of  property under 
section 6 to the competent authority or to any officer not 
below the rank of a Collector. 
 
Disposal of 
movable property 
found in a public 
place. 
Central Act 2 of 1974. 
Central Act 6 of 1878. 
Delegation of 
power. 
8  [Act No. 35 of 1974] 
16. (1) The Government may, by notification, make rules 
for carrying out all or any of the purposes of this Act. 
 
 (2) Every rule made under this section shall, 
immediately after it is made, be laid before each House of 
the State Legislature if it is in session and if it is not in 
session, in the session immediately following, for a total  
period of fourteen days, which may be comprised in one 
session or in two successive sessions, and if, before the 
expiration of the session in which it is so laid or the session 
immediately following, bo th Houses agree in making any 
modification in the rule or in the annulment of the rule, the 
rule shall, from the date on which such modification or 
annulment is notified have effect only in such modified form 
or have no effect, as the case may be; so howev er that any 
modification or annulment shall be without prejudice to the 
validity of anything previously done under that rule. 
 
17. (1) The provisions of the Andhra Pradesh (Andhra 
Area) Endowments and Escheat Regulation,  1817 in so far 
as they relate to escheats, and the Andhra  Pradesh 
(Telangana Area) Unclaimed Property Act,  1333 F., are 
hereby repealed. 
 
 (2) Upon such repeal, the provisions of sections  8 and 
18 of the 5Telangana General Clauses Act, 1891 shall apply. 
 
* * * 
                                                           
5. Adapted by G.O.Ms.No.45, Law (F) Department, Dated 01.06.2016. 
 Power to make 
rules. 
Repeal and 
saving. 
Regulation 7 of 1817. 
Act 1 of 1333 F. 
 
Act 1 of 1891. 

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