Enemy Property

Actor Saif Ali Khan has been directed to approach the appellate authority by the Madhya Pradesh High Court, regarding the central government’s declaration of the Pataudi family’s historical properties in Bhopal as “enemy property.”

Background about Saif Ali Khan Enemy Property Case

• Properties: The disputed properties all located in Bhopal worth approximately 15000 crores includes,
  • The Flag Staff House, the luxurious Noor-Us-Sabah Palace hotel, Dar-Us-Salam, the Bungalow of Habibi, Ahmedabad Palace, and the Kohefiza Property.
• Basis: The migration of Abida Sultan (eldest daughter of Bhopal’s then ruler,  Nawab Hamidullah Khan) to Pakistan in 1950 became the focus of the government’s claim to the properties as “enemy property”.
  • Saif Ali Khan is the Great Grandson of Sajida Sultan (second daughter of Nawab Hamidullah Khan) who married Nawab Iftikhar Ali Khan Pataudi.
    • Saif Ali Khan is thus an heir to the properties in Bhopal. 
• Legal Contest: 
  • 2014: The Custodian of Enemy Property Department declared the Pataudi family’s properties in Bhopal as enemy assets. 
    • Saif Ali Khan contested this notice, asserting his legal rights to the properties in the  Madhya Pradesh High Court. 
  • 2016: The Indian government issued an Ordinance explicitly stating that heirs would not have rights to enemy properties.
  • Recently the Central government has informed the court about the creation of an appellate authority to resolve disputes related to enemy properties.
  • The MP High Court therefore advised Saif Ali Khan to approach the newly established appellate authority for further adjudication. 

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About The Enemy Property

• The Enemy Property Act 1968  defines enemy property as,  “The property for the time being belonging to or held or managed on behalf of an enemy, an enemy subject or an enemy firm”
  • It refers to the assets (movable and immovable) left behind in India by individuals who migrated to countries designated as “enemy nations” during times of conflict.
• Definition of Enemy: The 1968 Act defined an ‘enemy’ as a country (and its citizens) that committed external aggression against India (i.e., Pakistan and China).
  • The central government had designated some properties belonging to nationals of Pakistan and China as ‘enemy properties’ during the 1962, 1965 and 1971 conflicts. 
  • The 1966 Tashkent Declaration: It was conducted between India and Pakistan and  included discussions about the return of such properties, but Pakistan disposed of these properties in 1971.
• Formulated Under: The Act is  formulated under the Defence of India Act, 1962.
• Authority: The properties are vested by the central government by appointing a ‘Custodian of Enemy Property for India’ under the Ministry of Home Affairs.
  • The custodian is tasked with managing these assets on behalf of the Indian government.
• Enemy Properties In India: As per Government reply in Lok Sabha, a total 9,280 enemy properties had been left behind by Pakistani nationals, and 126 by Chinese nationals worth about Rs 1 lakh crore.
  • Enemy shares: The Union Cabinet has also 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.
• Inheritance: Under the Act, The properties that are declared as enemy assets remain permanently vested with the Custodian of Enemy Property, with no room for inheritance or transfer.
• The Enemy Property (Amendment and Validation) Act, 2017: The amendments broadened the definition of “enemy subject” and “enemy firm”
  • Enemy Subject: 
    • They now include legal heirs of enemies even if they are citizens of India or of another country which is not an enemy
    • The nationals of an enemy country who subsequently changed their nationality to that of another country, etc.
  • Enemy Firm: 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 irrespective of whether the legal heir was an Indian citizen or a national of a non-enemy country.
• Disposal of Enemy Properties:
  • The Enemy Property Disposal Committee, comprising senior government officials, provides recommendations on whether to sell, transfer, or maintain the properties.
  • The Guidelines for the Disposal of Enemy Property, 2018: It outlines the procedure for the sale of properties vested in the Custodian of Enemy Property for India.
  • Proceeds: The proceeds from the sales are deposited into the Consolidated Fund of India.

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