What is an Enemy Property?

January 23, 2025

In recent developments, the Madhya Pradesh High Court has directed actor Saif Ali Khan to appeal against a central government order declaring his family’s historical properties in Bhopal as “enemy property.” This case has been ongoing since 2015, with properties valued at approximately Rs 15,000 crore, including the Flag Staff House and Noor-Us-Sabah Palace, at the centre of the dispute.

Background of the Case

The properties in question belonged to the Pataudi family, specifically linked to Saif Ali Khan, the grandson of Nawab Iftikhar Ali Khan Pataudi. The legal battle began after the Custodian of Enemy Property Department declared these assets as enemy property due to the migration of Saif’s great-aunt, Abida Sultan, to Pakistan in 1950. This declaration was made under the premise that her migration constituted a loss of ownership rights for her descendants.

About Enemy Property

Enemy property refers to assets left behind by individuals who migrated to countries deemed as enemies during conflicts.
This includes properties owned by individuals who became Pakistani or Chinese nationals during the Indo-Pakistan wars and the Sino-Indian War.
The Government of India, through the Defence of India Act, 1962, manages these properties via the Custodian of Enemy Property for India.

Legal Framework on Inheritance

The Enemy Property Act of 1968 stipulates that enemy properties cannot be inherited or transferred. The law ensures that all such assets remain under the control of the Custodian, regardless of the owner’s death or migration status. Amendments in 2017 further expanded the definition of “enemy subjects,” effectively blocking inheritance claims from legal heirs.

Court Rulings on Enemy Property

Judicial decisions concerning enemy property have varied. A notable case involved the Raja of Mahmudabad, whose properties were declared enemy assets after he migrated to Pakistan. The Supreme Court ruled in favour of his son, allowing him to inherit the properties. This decision prompted a wave of claims on enemy properties, leading to legislative changes that reinforced government control over these assets.

Disposal of Enemy Properties

The process for managing enemy properties is outlined in the Guidelines for the Disposal of Enemy Property, 2018. The Custodian is responsible for valuing and recommending actions for these properties. Vacant properties can be auctioned, while occupied ones may be sold to current occupants. The proceeds from these transactions are deposited into the Consolidated Fund of India.

Current Status of Enemy Properties in India

As of early 2018, there were approximately 9,280 enemy properties linked to Pakistani nationals and 126 to Chinese nationals. The government has initiated procedures to dispose of these assets, with portions valued at around Rs 1 lakh crore. A Group of Ministers has been tasked with overseeing this process to ensure efficient management and disposal of enemy properties.

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