On October 6, 2024, Goa’s Governor assented to the Escheats, Forfeiture and Bona Vacantia Act, 2024—a legislative shift that fundamentally changes how property transfers when someone dies without a will or identifiable heirs. For high-net-worth individuals and NRIs holding significant assets in Goa, Escheats act is not academic law. This is a direct threat to generational wealth transfer unless you act now.

The mechanism is elegant in its severity: under Article 296 of the Indian Constitution, when an individual dies intestate and no legal heir can be identified, their property automatically vests in the state government. Goa has now codified this principle with procedural rigor. The government gains full ownership after holding the property for ten years, after which it may be sold. Families lose everything. No inheritance tax in India, but potentially complete asset forfeiture—the ultimate tax on planning failure.

This article examines the Act’s provisions, its implications for wealth preservation, and the strategic countermeasures that prudent investors must implement immediately.

The Legislative Landscape: What Changed in October 2024

The Act at a Glance

The Goa Escheats, Forfeiture and Bona Vacantia Act, 2024 establishes a formal procedure for the state to take control of three categories of property:

Escheat. Property of a person who dies intestate without legal heirs passes automatically to the government. This applies regardless of the size of the estate or the length of time the property remained “ownerless.”

Forfeiture. Property seized by the state for breach of law or violation of Act provisions.

Bona Vacantia. Property without a clear owner—abandoned, mislaid, or unclaimed—becomes government property. The distinction from escheat is subtle but important: escheat is automatic; bona vacantia requires administrative determination.

The Act applies to all immovable and movable property within Goa’s jurisdiction, including properties held by NRIs, OCIs, and even foreign-resident Indians.

Key Procedural Safeguards (And Why They Matter Less Than You Think)

The Act establishes a “Competent Authority” to manage claims. If someone believes they are a legal heir, they can file a claim within a statutory period. The Competent Authority has four months to investigate and decide. Aggrieved parties may appeal within three months. Income from escheated property is held in government treasury until claims are resolved.

This sounds fair. In practice, it shifts the burden entirely to claimants. A potential heir living abroad—a common scenario for Goan diaspora investing in heritage properties—must navigate Indian administrative procedures from a distance, produce documentation, and prove legitimacy. The clock ticks. Deadlines pass. Property transfers to the state.

The Act provides immunity to the government from lawsuits arising from its administration of escheated property. Essentially, there is no recourse if the process fails.

Why Goa Is Especially Vulnerable

Goa’s property market in 2025 is booming. NRI investment now comprises 25-30% of the luxury market. Tourism reached 54 lakh visitors in H1 2025.

Wealth is concentrating here. And so is the risk of careless succession planning.

Goa attracts a particular type of investor: successful professionals and entrepreneurs who buy property as a lifestyle asset, not a business. They often view estate planning as unnecessary friction. They assume their children will handle things. They delay creating wills. Some explicitly avoid wills to maintain informal flexibility or to hide assets from scrutiny.

This is a miscalculation of dangerous proportions.

The NRI Dimension: FEMA, Repatriation, and Declared Assets

For NRIs inheriting property in Goa, additional layers of complexity emerge:

FEMA Compliance. NRIs must adhere to the Foreign Exchange Management Act when inheriting property. The rules permit inheritance, but the process requires documentation and sometimes RBI approval, particularly if the property is subsequently sold and proceeds are repatriated.

TDS and Capital Gains. NRIs selling inherited property in Goa must pay TDS (Tax Deducted at Source) at 20-30% + surcharge + cess and declare capital gains. The recent tax changes (12.5% LTCG without indexation post-July 2024) apply equally to NRIs.

Repatriation Limits. NRIs can repatriate sale proceeds, but process and timing matter. Incomplete documentation can delay or block repatriation, leaving funds trapped in India.

Unity of Inheritance and Overseas Asset Declaration. Goa courts now mandate that all worldwide assets be listed in inventory proceedings. An NRI with assets in multiple jurisdictions must navigate this coordination. Missing one jurisdiction can trigger claims of concealment, complicating the entire succession.

The Litigation Risk: Why You Need a Lawyer Before You Need One

Succession disputes are among the most bitter, costliest, and longest-running in Indian courts. A property worth ₹5 crore can burn ₹1-2 crore in legal fees and lost time over ten years of litigation.

The Goa Bona Vacantia Act does not eliminate disputes—it formalizes the process by which they are resolved. If your will is ambiguous, or if multiple family members have competing claims, the Competent Authority becomes involved. The process becomes bureaucratic, slower, and less sympathetic to family nuance.

Anticipate disputes. Prevent them through clarity. Engage a succession lawyer at the outset, not after someone dies.

The Global Wealth Planning Imperative

For UHNI individuals and NRIs, wealth is not confined to Goa. It is distributed across jurisdictions, currencies, and asset types. Succession planning must be equally global:

1. Create Wills in Each Jurisdiction: Separate, carefully coordinated wills addressing property in each location.
2. Coordinate Succession Under Different Laws: Goa (Portuguese law), India (Succession Act for non-Goan property), country of residence, etc.
3. Declare Assets Transparently: Use India’s income disclosure schemes and voluntary declaration processes to create a clean, documented picture.
4. Plan for Repatriation: If heirs are abroad, ensure proceeds can be repatriated smoothly through proper banking channels.
5. Engage Cross-Border Specialists: Do not rely on a single attorney. Use lawyers in each jurisdiction to ensure coordination.

The cost of not planning: potentially crores in lost assets, litigation, and family conflict.

Practical Pointers for UHNI Investors and NRIs

1. Act Now, Not Later: Do not postpone creating a succession plan. Tax planning and estate planning must happen while you are healthy and mentally sharp. The cost of planning is negligible; the cost of not planning is infinite.
2. Use Power of Attorney Strategically: Create a durable Power of Attorney naming trusted individuals to manage your Goa property if you are abroad and unable to travel.
3. Maintain Physical Documentation in Goa: Keep copies of critical documents (property deeds, wills, ownership certificates, PoA) with a trusted lawyer in Goa. When an international event occurs (death, major change), these documents become immediately accessible.
4. Coordinate With Your Financial Planner: Your wealth advisor should have a copy of your succession plan. If you die suddenly, your executor should be able to contact your advisor to understand the full scope of your assets and liabilities.
5. Consider NRI-Friendly Management Services: Several luxury property firms in Goa now offer succession planning and property management services for NRIs. They can transition properties to heirs, manage rentals, and handle administrative procedures. The fee: 3-5% of rental income or a fixed retainer. The value: peace of mind.

Risks and Contrarian Perspectives

The Government’s Perspective

From the Goa government’s point of view, the Escheats Act is pragmatic. Thousands of properties have been abandoned over decades—colonial-era houses, inherited plots nobody claims. Rather than let these assets decay, the government can take control, manage them, and generate revenue through leasing or sale. The Act formalizes what the government could already do under constitutional authority.

The downside: well-intentioned heirs sometimes lose property due to administrative failures, not genuine lack of heirs.

The Unintended Consequence

The Act may incentivize wealthier individuals to move assets out of Goa—incorporating them into trusts in Mumbai, holding them through offshore structures, or simply divesting entirely. This could reduce local property values and investment. Early data suggests this has not yet occurred, but it bears watching.

The Vulnerability of Older Properties

Properties inherited from parents or grandparents are especially vulnerable if not formally documented. An older person may have owned property for 60+ years with incomplete original documents. When they die, their children may struggle to prove clear title, triggering administrative complications and potentially bona vacantia claims.

The Class Dimension

This law, though neutral in language, may disproportionately affect middle-class heirs (those without access to sophisticated legal counsel) relative to ultra-wealthy families (who have professional advisors managing succession). This is a concern for equity-minded observers, though not a reason for individuals to avoid protective measures.

FAQ Section

The Bottom Line: Your Wealth Is Not Safe Without a Plan

Goa is becoming a premier destination for UHNI investment. Properties appreciate steadily. Rental income flows. The state is relatively stable and investment-friendly.

But without proper succession planning, all of it is at risk.

The Goa Escheats, Forfeiture and Bona Vacantia Act, 2024 is not designed to harm families. It is designed to ensure property does not simply disappear into limbo. However, it shifts the burden of proof to heirs. If you cannot clearly establish your identity as a legal heir within statutory timelines and produce required documentation, the government assumes control.

This is not a minor legal technicality. This is a threat to generational wealth transfer.

Your response should be decisive:

1. Create a will under Goa law.
2. Declare assets and update documentation.
3. If your circumstances are complex, establish a trust.
4. Review and update every three years.
5. Engage a succession lawyer, not a general practice attorney.

The cost: minimal. The benefit: your wealth passes to your chosen beneficiaries, not to the state.