What is enemy property?

Actor Saif Ali Khan has had a major setback with the Madhya Pradesh High Court dismissing his long-standing plea challenging the government’s decision that classified his ancestral properties as enemy properties. The properties in question include thousands of acres of land in and around Bhopal and properties such as the property where Saif Ali Khan spent his childhood- the Flag Staff House, the luxury hotel Noor-Us-Sabah Palace, Dar-Us-Salam, Bungalow of Habibi, Ahmedabad Palace and Kohefiza Property. All these immovable properties are worth around Rs 15,000 crore. The Madhya Pradesh High Court set aside the 25- year old ruling done by a local trial court and asked for a fresh reexamination that has to be concluded within one year.

So, why are these properties belonging to Saif Ali Khan declared as enemy property? In this guide, we discuss in detail about what enemy property is, who manages them and about the actor’s case. 

What is an enemy property?

The moveable and immovable properties belonging to people or entities declared as enemies by the government because of war or conflict are known as enemy properties. These can include assets such as land, properties, businesses, bank accounts, and other assets. In India, most enemy properties belong to people who moved to Pakistan or China. 

What is the Enemy Property Act, 1968?

Enemy properties are classified under the Enemy Property Act, 1968 and its subsequent amendments and extends to the whole of India.  This act also applies to all citizens of India outside India, and to branches and agencies outside India of companies or corporate bodies registered or incorporated in India. 

The Enemy Property Act particularly includes the properties of people who migrated to Pakistan and China during wars- the Indo-Pak Wars of 1947, 1965, and 1971 and the Sino-Indian War of 1962. Under this, the government is empowered to seize properties of people who migrated to Pakistan after partition. 

Provisions of the Enemy Property Act

• Definition of enemy: According to the act, the original owners also known as enemies or their legal heirs (even if they are citizens of India or any other country that is not an enemy) cannot claim, sell or transfer ownership of these properties. 
• Vesting of custodian: Properties will be vested with custodians in case of death of enemy, legal heir is Indian, the enemy has changed his nationality etc. The custodian will have all rights on the property and no succession governing laws will be valid for the enemy properties.
• Divestment: The government can divest the enemy property from the custodian and give it to the owner. However, post amendment, transfer of ownership of enemy property to the owner is valid only if a person approaches to inherit the property and the property is not an enemy property.
• Transfer of properties by enemy: Before the amendment, the enemy couldn’t transfer his property as it is against public interest and hindered the divesting of property. With the amended act, no enemy can transfer property and also nullifies all transfers done before or after implementation of the Enemy Property Act, 1968. 

Who manages the enemy properties?

The enemy properties are managed by Custodian of Enemy Property for India (CEPI), a government appointed authority who have custodians on behalf of the government. The custodians can put the enemy property on rent or sell it. However, this can only be done if permission is granted by the ministry of home affairs under which the CEPI operates. Any income generated by the enemy property is credited to the state in which the property is located.

What are the functions of the custodians of the enemy property? 

Before the Enemy Property Act, 1968 was amended, the custodians were responsible to maintain the enemy and his family if they were in India from the income generated from the enemy property. However, post amendment, the custodian does not have any such responsibility and does not have to take care of the enemy or his family. The custodians can fix and collect license fees, rent etc. from enemy property. They can also evict illegal occupants in the property and demolish illegal constructions on the property. 

Why was actor Saif Ali Khan’s ancestral properties declared enemy property? 

The Enemy Property Act was amended in 2017 through the Enemy Property (Amendment and Validation) Act. This amendment secured the powers of the custodian and prevented heirs even if they were Indian citizens from claiming ownership on the enemy properties. Interestingly, these provisions have been implemented retrospectively since 1968.  

Nawab Hamidullah Khan was the last ruling Nawab of Bhopal. Under the Bhopal Succession to the Throne Act, 1947, the eldest son was heir to the properties and in the absence of a son, the eldest daughter was heir to the properties. Abida Begum, the eldest child of Nawab Hamidullah Khan (also the grand aunt of Saif Ali Khan) was the rightful heir to the properties as per the Bhopal Succession to the Throne Act, 1947. However, she relinquished her Indian citizenship and migrated to Pakistan in 1950. Following this, the second daughter Sajida Sultan( Saif Ali Khan’s grandmother) was declared the legal successor. She was married to Iftikhar Ali Khan Pataudi and thus, the Pataudi family claimed inheritance. In 2015, an inquiry by the Enemy Property Department initiated an inquiry on how the Pataudi family could inherit the property that was classified as ‘enemy property’ as the legal heir Abida Begum was the enemy.” Saif Ali Khan had contested this probe and got a stay from the High Court. In December 2024, the Madhya Pradesh vacated Saif Ali Khan’s stay and also rejected his plea. The actor was given 30 days to file his plea, absence of which allowed the Bhopal district administration to take over the properties. 

Immovable enemy properties in India

These are immovable enemy properties of Pakistani nationals vested in the custodian of enemy property for India [CEPI] state-wise and district wise. Note that this list of enemy property is tentative. Several cases are under examination and being processed. The list shall be updated from time to time.

E-auction of enemy property 

To know more about the e-auction of enemy property log on to https://enemyproperty.mha.gov.in/epweb/eAuction

Conclusion

The Enemy Property Act, 1968 highlights national interests. There is a proper process that is being followed by the government in managing the enemy properties such that they also bring in revenue to the state and the country. The current case of actor Saif Ali Khan’s properties being declared as enemy property is one of the many properties that are under the purview of this act. —Any person who is aggrieved by the central government order under section 18 of this Act, can file an appeal to the High Court and the High Court after hearing the parties may pass on orders that it thinks proper thereon. No suit, prosecution or other legal proceeding shall lie against the central government or the custodian or an inspector of enemy property for anything which is in good faith done or intended to be done under this Act.

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