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Section 29: Failure of heirs
If an intestate has left no heir qualified to succeed to his or her property in accordance with the provisions of this Act, such property shall devolve on the Government; and the Government shall take the property subject to all the obligations and liabilities to which an heir would have been subject.
Source: official text of The Hindu Succession Act, 1956 as published on India Code (PDF). All sections of the Hindu Succession Act, 1956.