What happens to any property situated in India which would have accrued to His Majesty or the Ruler of an Indian State by escheat or lapse, or as bona vacantia for want of a rightful owner?
According to the context provided, any property in the territory of India which 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 vest in such State if it is property situate in that State. In any other case, the property shall vest in the Union. The exact distribution depends on whether the property was in the possession or under the control of the Government of India or the Government of a State at the date when it would have so accrued to His Majesty or to the Ruler of an Indian State, and according as the purposes for which it was then used or held were purposes of the Union or of a State.