Madhya Pradesh High Court has directed actor Saif Ali Khan to file an appeal with the appellate authority regarding a decision by the central government. The ruling in question classified ancestral properties of the Pataudi family in Bhopal, valued at approximately ₹15,000 crore, as “enemy property.”
- Overview: The Enemy Property Act of 1968 governs the management of properties left behind in India by individuals who migrated to countries designated as enemies, such as Pakistan and China. The Act has undergone significant amendments, including one in 2017, to strengthen government control over such properties.
- Definition of Enemy Property (1968): Enemy property refers to assets, both movable and immovable, left in India by individuals who migrated to enemy nations, such as Pakistan or China, during conflicts. An ‘enemy’ includes a country or its citizens that committed aggression against India.
- Historical Context: After the wars with Pakistan in 1965 and 1971 and the Sino-Indian War of 1962, properties owned by individuals adopting the nationality of Pakistan or China were taken over. These properties were managed under the Defence of India Rules, framed under the Defence of India Act, 1962. The Custodian of Enemy Property for India was assigned to oversee and manage these assets.
- Objective of the 1968 Act: The Act was introduced to regulate enemy properties and empower the custodian to manage them. It extended to properties left behind by individuals who migrated to China after the 1962 Sino-Indian War.
- Amendments in 2017: The 2017 amendment removed inheritance rights for heirs of enemy property owners. Properties continued to be vested with the Custodian, regardless of the owner’s death or the closure of enemy firms. Legal heirs, even if Indian citizens or nationals of non-enemy countries, were excluded from claiming ownership.
- Expanded Definition of ‘Enemy’: Included legal heirs of enemy property owners, even if they held Indian or other non-enemy nationalities. Covered nationals of enemy countries who later changed their citizenship to another country.
Critics argue the Act violates individual property rights. While, Proponents highlight its importance in safeguarding national security.
How Courts Have Dealt With Enemy Property Cases
- The Raja of Mahmudabad’s Estate: The Raja owned properties in Hazratganj (Lucknow), Sitapur, and Nainital. He migrated to Pakistan in 1957 and became a Pakistani citizen, while his wife and son remained in India as citizens.
- Enemy Property Declaration: After the 1968 law was enacted, the Raja’s properties were labeled as enemy assets.
- Legal Challenge by the Son: Following the Raja’s death, his son, Mohammad Amir Mohammad Khan, contested the enemy property designation and claimed ownership.
- Supreme Court Verdict: In 2005, the Supreme Court ruled in favor of the son, allowing him to inherit the properties.
- Rise in Legal Claims: The court’s decision led to an increase in claims by others, including distant relatives, who submitted documents like gift deeds to claim enemy properties.
- 2017 Act: A new law was passed to overturn prior court rulings. It stated that enemy property would remain with the Custodian, regardless of inheritance or changes in nationality.
What Happens To Enemy Property After Takeover
- Disposal Guidelines: The 2018 guidelines provide rules for selling properties managed by the Custodian of Enemy Property for India.
- Property Valuation: A detailed list of enemy properties is prepared, and their values are assessed by Valuation Committees led by district magistrates.
- Role of the Disposal Committee: The Enemy Property Disposal Committee, which includes senior government officials, decides whether to sell, transfer, or retain the properties.
- Auction of Vacant Properties: Empty properties can be sold to the highest bidder through public auctions.
- Dealing with Occupied Properties: Occupied properties may be offered to current occupants at a value set by the committee.
- Sale of Movable Properties: Items like shares can be sold through auctions, tenders, or approved methods.
- Proceeds Management: The Custodian ensures legal compliance, issues sale certificates, and deposits the proceeds into the Consolidated Fund of India.