What is Enemy Property? Everything You Need to Know

Enemy property is one of the most intriguing and debated aspects of Indian property law. The term itself sparks curiosity—what does it mean for a property to belong to an “enemy”? Why does the Indian government control such assets, and what ultimately happens to them?

This concept traces its origins to India’s turbulent history – Partition, wars with Pakistan and China, and the legislative need to safeguard assets linked to foreign adversaries. Today, the Enemy Property Act, 1968, governs these holdings, encompassing thousands of properties valued at thousands of crores.

From royal estates like the Pataudi family’s ancestral holdings to modest plots in small towns, enemy properties are scattered across the nation. Understanding this law is vital not only for legal professionals but also for citizens curious about India’s unique intersection of history, law, and geopolitics.

Table of Contents

• What is Enemy Property
• From the Evacuee Property Act to the Enemy Property Act
• The Enemy Property Act, 1968
• The 2017 Amendment and Its Impact
• Custodian of Enemy Property for India
• Saif Ali Khan’s Ancestral Property Declared Enemy Property
• Implications for Citizens
• Enemy Property in India Today

What is Enemy Property?

Enemy property refers to assets—both movable and immovable—owned by individuals or entities who are nationals of a country that is at war with India or has been declared an enemy state. These could include land, houses, commercial buildings, bank accounts, shares, or other forms of valuable assets.

The term “enemy” here is a legal classification, not a personal label. It generally applies to nationals of Pakistan and China, given the wars India has fought with them. This definition is crucial for enemy searches – “enemy” in this context refers to a person or entity whose country is at war with India or has been declared hostile by the government.

For example, if someone living in India migrated to Pakistan after the Indo-Pak wars and retained property in India, that property could be declared enemy property.

From the Evacuee Property Act to the Enemy Property Act

After the 1947 Partition, many people migrated to Pakistan, leaving behind vast tracts of property. Initially, such assets were governed by the Evacuee Property Act—a 1948 law that allowed the Indian government to take possession of properties abandoned by people who migrated during Partition.

Over time, geopolitical events changed the legal approach. Following the Indo-China war of 1962 and the Indo-Pak wars of 1965 and 1971, India introduced stronger measures. Under the Defence of India Rules, the government appointed a Custodian of Enemy Property for India to manage these assets.

Finally, the Enemy Property Act, 1968, was enacted to formalize the system. This marked a shift from temporary wartime arrangements to a permanent legal framework.

Suggested read: Supreme Court Judgement on Ancestral Property

The Enemy Property Act, 1968

The Enemy Property Act, 1968, vests ownership of enemy properties in the Custodian, who acts on behalf of the Government of India. Some key provisions include:

1. Vesting of Property: Once declared, the property is vested in the Custodian and cannot be transferred, sold, or claimed without government approval.
2. Bar on Inheritance: Even legal heirs who are Indian citizens cannot claim ownership if the original owner was classified as an enemy subject.
3. Jurisdictional Restrictions: Civil courts are barred from entertaining disputes over such properties.
4. Wide Coverage: The law applies to both movable and immovable properties, as well as corporate holdings where enemy subjects have shares.

This legislation aimed to prevent assets in India from benefiting hostile nations or their citizens.

The 2017 Amendment and Its Impact

The Enemy Property (Amendment and Validation) Act, 2017, made the law even more stringent:

1. Retrospective Application: Transfers of enemy property made before or after 1968—whether by sale, gift, or inheritance—were declared void.
2. Expanded Definitions: Terms like “enemy subject” and “enemy firm” were broadened to include heirs and successors of enemy nationals, even if they are citizens of India or third countries.
3. Finality of Vesting: Once a property is vested in the Custodian, it remains so permanently; no legal or equitable claim is allowed.

This change had a massive impact on high-profile disputes. For instance, in cases involving large estates linked to royal families, heirs lost the ability to reclaim property even if they had lived in India all their lives.

The Custodian of Enemy Property for India

The Custodian is the central authority responsible for managing these properties. Duties include:

1. Taking possession and maintaining records.
2. Collecting income from the properties (rent, interest, etc.).
3. Evicting unlawful occupants.
4. Selling or auctioning properties with government approval.
5. Depositing proceeds into the Consolidated Fund of India.

As of recent government data, there are over 12,600 enemy properties across India, valued at over ₹1 lakh crore. Many are prime real estate assets in metropolitan areas, while others are agricultural lands or rural plots.

Recent Case: Saif Ali Khan’s Ancestral Property Declared Enemy Property

Saif Ali Khan’s ancestral properties were declared enemy property due to provisions under the Enemy Property Act, which was strengthened by the 2017 Enemy Property (Amendment and Validation) Act. The amendment gave sweeping powers to the Custodian of Enemy Property and barred heirs—even Indian citizens—from claiming such properties if the original owner was classified as an “enemy.” Importantly, these rules apply retrospectively from 1968.

The dispute traces back to Nawab Hamidullah Khan, the last ruler of Bhopal. Under the Bhopal Succession to the Throne Act, 1947, the eldest son would inherit, or in his absence, the eldest daughter. His eldest daughter, Abida Begum, Saif Ali Khan’s grand-aunt, became the rightful heir but migrated to Pakistan in 1950, giving up Indian citizenship. This triggered the “enemy” classification.

After Abida Begum’s departure, the second daughter, Sajida Sultan (Saif’s grandmother), was declared the legal successor. Married to cricketer Nawab Iftikhar Ali Khan Pataudi, she brought the Bhopal properties into the Pataudi family’s fold. However, in 2015, the Enemy Property Department questioned this inheritance, arguing that the original heir was an “enemy” and thus the property should not have passed to Sajida Sultan’s line.

Saif Ali Khan challenged this inquiry and initially secured a stay from the High Court. But in December 2024, the Madhya Pradesh High Court vacated the stay and rejected his plea, giving him 30 days to appeal. Without further legal action, the Bhopal district administration moved to take over the properties.

Most recently, the Supreme Court has intervened, granting interim relief to Saif Ali Khan’s family while the case proceeds.

Implications for Citizens

For Indian citizens, the Enemy Property Act can be both a safeguard and a challenge:

• Safeguard: Ensures that assets linked to hostile nations do not undermine India’s sovereignty.
• Challenge: Denies inheritance rights to citizens whose ancestors migrated under complex circumstances, sometimes decades ago.
• Economic impact: Disposing of these assets could generate significant government revenue, but legal disputes often delay such processes.

Enemy Property in India Today

The law remains relevant because:

• India continues to have strained relations with certain countries.
• Many properties are located in urban centers, where land values are high.
• Periodic government auctions bring such assets back into economic circulation.

For enemy property in India (110) searches, the current picture is one of legal finality—once vested, there is no path back for private claimants under current law.

The Enemy Property Act, 1968, is a fascinating intersection of law, history, and geopolitics. It reflects India’s effort to protect national interests while balancing complex issues of property rights and historical justice. Whether one sees it as a necessary safeguard or an overly harsh measure, there is no doubt that enemy property will remain a significant and occasionally controversial feature of India’s legal landscape for years to come.

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