Explained: The Enemy Property Act.

Following the 1962 Indo-China War and the India-Pakistan Wars in 1965 and 1971, the Indian government took possession of the movable and immovable property left behind by those who fled India as a result of the wars. These properties spread across various Indian states and were regarded as enemy properties.

The office of the Custodian of Enemy Property for India (CEPI), is in charge of enemy possessions in India which was created under the Defence of India Act of 1939. Via the Custodian, this center essentially controls all enemy possessions in India. India and Pakistan signed the Tashkent Declaration in 1966 following the 1965 war, in which they promised to discuss the possible restoration of assets captured by either side during the conflict.

What exactly is the “enemy property law”?

This Act established in 1968, provided for the custody and management of the enemy property. As a result, of an increase in succession claims by the legitimate heirs of the original owners of enemy assets, the center was obliged to revise the 50-year-old statute in 2017. The bill’s text states naming particular examples that there have been many rulings by various courts, negatively impacting the authority of the CEPI (Custodian) and the government of India as granted under the Act.

Example

A 2005 Supreme Court decision had a significant impact on the sharp rise in the number of these lawsuits. When it came to the ownership of the estate of the former Raja of Mahmudabad, the Supreme Court decided in favor of his son, who asserted possession after his father died in 1973. His father owned many historic properties in Sitapur, Lucknow, and  Nainital and fled India for Iraq during the partition. In 1957, he obtained Pakistani citizenship and then relocated to London, where he died. Raja’s wife and son remained in India as Indian citizens, despite this Raja’s estate was considered enemy property under the 1968 enemy property statute. 

Supreme Court returned Raja’s inheritance to his son after an almost four-decade legal fight.  But when the 2017 law’s regulations took effect retroactively, the order was declared void. The Enemy Property (Amendment and Validation) Bill, of 2016, was brought with the intention of amending the Enemy Property Act of 1968 and the Public Premises (Eviction of Unauthorized Occupants) Act of 1971. The Bill was adopted in parliament in March 2017 when the Lok Sabha passed it to broaden the meaning of ‘enemy’ and ‘enemy subject,’. The 2017 legislation specified that heirs of persons who cannot claim ownership over enemy possessions, who left India during the conflicts of 1962, 1965, and 1971, regardless of nationality.

Key Components Of The 2017 Enemy Property Law

Enemy definition

The terms “enemy” and “enemy subject” refer to any enemy’s legal heir and successor, whether they are Indian citizens or citizens of other countries that are not enemies. Regardless of the nationality of its members or partners, it will also include the succeeding firm of an enemy firm in the designation of “enemy firm”.

It also specifies that the law of succession, as well as any customs or potential uses controlling succession, will not apply to enemy property.

In-charge

The Custodian retains ownership of enemy property as per the Defence of India Rules, 1962. The enemy property will remain to vest in the Custodian, even if the enemy, enemy person, or enemy firm ceases to be an enemy owing to death, extinction, business wound up, or change of nationality. This holds true regardless of whether the legal heir or successor is an Indian or a citizen of a country that is not an enemy.

With the prior consent of the federal government, only the custodian can dispose of such properties. It states that the transfer of any property vested in the custodian will be illegal and any adversary, enemy subject, or enemy firm has no right and is never to be believed to have any right to transfer any property. 

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