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Polity & Governance
Mahesh

24/01/25 10:07 AM IST

Enemy property

In News
  • Madhya Pradesh High Court has asked actor Saif Ali Khan to approach the appellate authority against an order of the central government that declared historical properties of the Pataudi family in Bhopal, estimated to be worth Rs 15,000 crore, as “enemy property”.
Case background
  • In 1947, the princely state of Bhopal was ruled by Nawab Hamidullah Khan. He had three daughters, the eldest of whom, Abida Sultan, migrated to Pakistan in 1950.
  • The second daughter, Sajida Sultan, stayed in India and married Nawab Iftikhar Ali Khan Pataudi, who played cricket for both England and India, and whose son was the legendary Mansoor Ali Khan ‘Tiger’ Pataudi.
  • Sajida’s grandson – Tiger Pataudi’s son – Saif Ali Khan inherited a share of the properties in Bhopal.
  • However, the migration of Abida Sultan became the focus of the government’s claim to the properties as “enemy property”.
  • In 2014, the Custodian of Enemy Property Department declared the Pataudi family’s properties in Bhopal as “enemy property”. Saif Ali Khan challenged the custodian’s notice.
  • In 2016, an Ordinance was issued explicitly stating that heirs would have no rights over these properties.
Enemy property
  • Enemy property refers to the assets, both movable and immovable, left behind in India by individuals who migrated to countries designated as “enemy nations” during times of conflict.
  • Following the wars between India and Pakistan in 1965 and 1971, and the Sino-Indian War in 1962, the Indian government assumed control of properties and businesses owned by those who adopted the nationality of Pakistan or China.
  • Under the Defence of India Rules, formulated under the Defence of India Act, 1962, these properties were vested with the Custodian of Enemy Property for India.
  • The custodian is tasked with managing these assets on behalf of the Indian government.
  • Under the Enemy Property Act, 1968, properties that are declared as enemy assets remain permanently vested with the Custodian of Enemy Property, with no room for inheritance or transfer.
  • The law provides the legal framework for the central government to manage and retain control of enemy properties across various states.
The Enemy Property (Amendment and Validation) Act, 2017
  • The Enemy Property (Amendment and Validation) Act, 2017, reinforced the law and expanded its scope.
  • The amendments broadened the definition of “enemy subject” and “enemy firm” to include legal heirs and successors, irrespective of their citizenship, whether Indian or from a non-enemy nation.
  • It stipulated that enemy property would remain with the Custodian even in cases where the enemy subject or firm ceased to exist due to death, extinction, or business closure.
  • This applied regardless of whether the legal heir was an Indian citizen or a national of a non-enemy country.
  • The amendments effectively nullified inheritance claims, ensuring that such properties remained indefinitely under the control of the government.
  • Critics argue that the Act infringes on individual property rights, while supporters emphasize its importance for national security.
The Guidelines for the Disposal of Enemy Property, 2018
  • The Guidelines for the Disposal of Enemy Property, 2018 outline the procedure for the sale of properties vested in the Custodian of Enemy Property for India.
  • A detailed list of enemy properties and their valuation is submitted to the central government within a specified timeframe.
  • Valuation Committees headed by district magistrates determine the value of these properties based on circle rates and other factors.
  • The Enemy Property Disposal Committee, comprising senior government officials, provides recommendations on whether to sell, transfer, or maintain the properties.
  • Vacant properties can be auctioned to the highest bidder, while occupied properties may be offered to existing occupants at a value determined by the committee.
  • Movable enemy properties, such as shares, may be sold through public auction, tenders, or other approved methods.
  • The Custodian ensures legal compliance and issues sale certificates once the transactions are completed, with proceeds deposited into the Consolidated Fund of India.
Enemy properties in India
  • On January 2, 2018, then Minister of State for Home Hansraj Ahir told Lok Sabha that a total 9,280 enemy properties had been left behind by Pakistani nationals, and 126 by Chinese nationals.
  • In November 2018, the Union Cabinet approved the procedure to sell enemy shares worth more than Rs 3,000 crore.
  • A total of 6,50,75,877 shares of 996 companies belonging to 20,232 shareholders were identified.
  • In 2020, a Group of Ministers (GoM) headed by Union Home Minister Amit Shah began monitoring the disposal of more than 9,400 enemy properties, which the government estimates is worth about Rs 1 lakh crore.
Source- Indian Express

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