The Enemy Property Act 1968: UPSC Current Affairs

Why in News?

Properties worth an estimated Rs 15,000 crore, owned by the Pataudi family and partially linked to actor Saif Ali Khan, could be taken over by the government under the Enemy Property Act 1968. The Madhya Pradesh High Court recently asked actor Saif Ali Khan to appeal against the Centre's decision declaring ancestral properties of the Pataudi family worth ₹15,000 crore as "enemy property" under the Enemy Property Act 1968.

What is Enemy Property?

2. In the wake of the India-Pakistan wars of 1965 and 1971, there was migration of people from India to Pakistan.

3. Under the Defense of India Rules established by the Defense of India Act of 1962, the Government of India seized the properties and companies of individuals who acquired Pakistani nationality.

Who Manages These Properties?

4. These properties, referred to as “enemy properties”, were entrusted to the Custodian of Enemy Property for India by the central government. A similar process was followed for the properties left behind by individuals who moved to China after the Sino-Indian War in 1962

Legal Basis: Enemy Property Act 1968

Notably, under the Enemy Property Act of 1968, properties designated as enemy properties remain permanently vested with the Custodian of Enemy Property, meaning they cannot be inherited or transferred.· This law establishes the legal framework that allows the central government to manage and maintain control over enemy properties in various states.

Enemy Property (Amendment and Validation) Act, 2017

Why Was the Amendment Needed?

The amendment was passed to strengthen the original Enemy Property Act of 1968, which had legal loopholes allowing successors or heirs to claim ownership of enemy properties

1.Key Highlights of the 2017 Amendment1. Reinforced the 1968 Act:
The amendment validated and broadened the scope of the Enemy Property Act, ensuring more control for the government over such properties.

2. Expanded Definitions: Enemy subject” and “enemy firm” now include:· 

Legal heirs and successors of the enemy, even if they are Indian citizens or citizens of non-enemy countries

Succeeding firms, regardless of partner nationality

3. Permanent Custodianship:
Enemy property will remain with the Custodian, even if:· The original enemy or firm dies, changes nationality, or ceases to exist· The legal heir is an Indian citizen

No Inheritance, No Transfer· The amendment nullifies any right to claim or transfer such properties — effectively blocking attempts at succession by heirs, including Indian nationals. Objective: To ensure permanent government control over enemy properties and avoid prolonged legal disputes and succession claims.

Significance of the Law· Over 9,400 properties (majority in Uttar Pradesh) are classified as enemy property· Prevents strategic assets from returning to individuals with foreign allegiance· Reflects tension between national security and property rights

UPSC Relevance 

GS Paper II:· Government policies, Acts, Rights vs. Security

GS Paper III:· Internal Security and Legal Framework

Keywords to remember:
Custodian of Enemy Property, Property Rights, Legal Heirs, National Security, Amendment Act 2017

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