Enemy Property Act in India, Background and Key Provisions

Context: The Madhya Pradesh High Court has directed Saif Ali Khan to file an appeal before the appellate authority challenging the Central Government’s order.

What is Enemy Property?

• Properties left behind by individuals or their heirs who:
  • Fought wars against India, or
  • Acquired citizenship of enemy nations (like Pakistan or China).
• These include both movable and immovable assets (land, buildings, shares, businesses).
• Such properties are taken over by the Indian government and classified as “enemy property.”

Background of Enemy Properties in India

• The concept originated after the:
  • Indo-Pak Wars (1965 & 1971)
  • Indo-China War (1962)
• Citizens who migrated to Pakistan or China left behind their properties in India.
• These were seized under the Defence of India Act, 1962 and Defence of India Rules.
• A Custodian of Enemy Property is appointed by the government to manage, control, and dispose of these assets.

Enemy Property Act, 1968

• Passed to legally vest enemy properties permanently with the Custodian of Enemy Property.
• Key provisions:
  • Enemy properties cannot be transferred or inherited.
  • Only the Custodian has the authority to manage, lease, or dispose of them.

Enemy Property (Amendment and Validation) Act, 2017

• Major updates:
  • Inheritance rights abolished—no person (even Indian citizens) can claim enemy property.
  • Legal ownership and transfer to any other party are strictly prohibited.
  • Closed all loopholes for civil claims or inheritance disputes.

Process for Disposal of Enemy Property (2018 Guidelines)

The government laid out procedures for sale, valuation, and auction:

• Valuation Committees led by District Magistrates assess properties.
• If occupied, the occupant may buy the property at a set price.
• Movable assets (like shares) are sold through public auctions or tenders.

Key Statistics on Enemy Property

• 9,280 enemy properties left behind by Pakistani nationals.
• 126 enemy properties left behind by Chinese nationals.
• Over 9,400 properties under government custody.
• Estimated total value: over ₹1 lakh crore.
• Auction proceeds go to the Consolidated Fund of India.

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