WHAT IS AN ENEMY PROPERTY?

PRELIMS BITS

An “enemy property” refers to assets left behind by individuals who migrated to countries considered enemies during conflicts. This includes properties owned by individuals who became nationals of Pakistan or China during the Indo-Pakistan wars and the Sino-Indian War.

Background of the Case

• The Madhya Pradesh High Court recently directed actor Saif Ali Khan to appeal a central government order declaring his family’s historical properties in Bhopal as enemy property.
• The properties in dispute, valued at approximately Rs 15,000 crore, include the Flag Staff House and Noor-Us-Sabah Palace.
• The legal battle began in 2015 after the Custodian of Enemy Property Department declared these assets as enemy property, based on the migration of Saif’s great-aunt, Abida Sultan, to Pakistan in 1950.

Legal Framework

• Enemy properties are managed by the Custodian of Enemy Property for India under the Defence of India Act, 1962.
• The Enemy Property Act of 1968 prohibits inheritance or transfer of enemy properties, ensuring that such assets remain under the Custodian’s control. A 2017 amendment expanded the definition of “enemy subjects,” blocking inheritance claims from descendants.

Court Rulings

• Judicial decisions on enemy property have been inconsistent. For example, in the case of the Raja of Mahmudabad, the Supreme Court allowed his son to inherit the properties, leading to a surge in claims and further legislative changes reinforcing government control.

Disposal of Enemy Properties

• The Guidelines for the Disposal of Enemy Property, 2018 outline how these properties are managed. The Custodian is responsible for valuing and recommending disposal actions.
• Vacant properties can be auctioned, and occupied ones may be sold to current occupants, with proceeds going into the Consolidated Fund of India.

Current Status

• As of early 2018, there were around 9,280 enemy properties linked to Pakistani nationals and 126 to Chinese nationals.
• The government is working to dispose of these properties, which are valued at approximately Rs 1 lakh crore. A Group of Ministers oversees this process to ensure efficient management and disposal.