Enemy Property - Background, Its Evolution, Features & Other Details - Notes for UPSC

People who acquired citizenship of China or Pakistan left behind properties which came to be known as “Enemy Properties.” The Enemy Property Act 1968 governs such properties. This act is implemented by the Ministry of Home Affairs. The Custodian of Enemy Property for India is a government department in India with the authority to seize properties in India owned by Pakistani nationals. This action was taken following the Indo-Pakistani War of 1965, leading to the enactment of the Enemy Property Act in 1968.

The topic of Enemy Property is particularly important from the exam point of view as questions can be asked about this topic in both the preliminary (GS 1 Exam) and the mains examination (GS 2) of UPSC.

In this article on Enemy Property, we shall discuss what it is, its history, significance, issues associated & other details. This will be very useful for aspirants in the UPSC Exam.

Recent Update on Enemy Property in India

• According to the Custodian of Enemy Property for India, there are 9280 Enemy Properties belonging to the citizens of Pakistan spread in 20 states/UTs of India.
• Also, there are 9406 Enemy Properties belonging to the citizens of China spread in 6 states/UTs of India.

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What is an Enemy Property?

Enemy Property refers to assets owned by individuals who had previously been residents of India but subsequently obtained citizenship in China or Pakistan. Their relocation to these countries often occurred due to significant events like the 1965 Indo-China War or the 1971 India-Pakistan War. Following these events, the Indian Government introduced the Defence of India Rules in 1962, which led to the confiscation of properties belonging to citizens of Pakistan or China, designating them as Enemy Properties. Currently, the Custodian of Enemy Property for India oversees these assets within the country. However, it's noteworthy that the Pakistan government offered these resources for sale in 1971.

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Historical Background on Enemy Property

• In accordance with the Defense of India Acts, the Indian government seized the possessions of the citizens of China and Pakistan people when war broke out with China in 1962 (with China), 1965, and 1971. (with Pakistan).
• According to these laws, a nation was considered an “Enemy” if it committed atrocities against India and its citizens.
• “Enemy properties” had been assigned to their homes. Real land, buildings, precious metals like gold and jewellery, and stock in a firm are examples of properties.
• India and Pakistan were required to take into consideration the restitution of any assets or property that had been taken by either side as a result of hostilities, under a clause in the Tashkent Declaration from January 10, 1966.
• But in 1971, the Pakistani government destroyed all of these buildings.

Who oversees these properties?

• The Custodian of Enemy Property for India is in charge of overseeing Enemy Property.
• According to Section 2(a) of the Enemy Property of India Act, “Custodian” means the Custodian of Enemy Property for India appointed or deemed to have been appointed under section 3 and includes a Deputy Custodian and an Assistant Custodian of Enemy Property appointed or deemed to have been appointed under that section.
• According to Section 11 of the Act, the Custodian of Enemy Property for India also serves as a civil court in line with the Civil Procedure Court, 1908.
• According to Section 18 (c) of the Act, Any person aggrieved by an order of the Central Government under section 18 of this Act, may, within a period of sixty days from the date of communication or receipt of the order, file an appeal to the High Court on any question of fact or law arising out of such orders, and upon such appeal, the High Court may, after hearing the parties, pass such orders thereon as it thinks proper: Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing an appeal within the said period, allow it is to be filed within a further period not exceeding sixty days.
• The Custodian of Enemy Property for India position was created under the Enemy Property Act of 1968. (CEPI).
• The Enemy Property Act of 1968 now recognises the CEPI Office as a statutory authority and a subordinate office of the Ministry of Home Affairs. as modified in 2017

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How did India deal with the Enemy Property?

• The Custodian of Enemy Property for India maintained ownership of Enemy Property in accordance with the 1968 Enemy Property Act.
• Some hostile states’ property is under the control of Custodian of Enemy Property of India.
• It’s possible to classify some transportable objects as Enemy assets.
• The 1968 Enemy Property Act and the 1971 Public Premises (Eviction of Unauthorized Occupants) Act were amended by the Enemy Property (Amendment and Validation) Bill, which was adopted by Parliament in 2017.

Details of Enemy Property in India

Properties Left by Pakistani Nationals – 9280	Properties Left by Chinese Nationals – 126
Location of	Such Properties
Uttar Pradesh – 4991	Meghalaya – 57
West Bengal – 2735	West Bengal – 29
Delhi – 487	Delhi – 7

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What is Enemy Property Act 1968?

• The vesting, preservation, management, control, sale, transfer of rights, disposal, and other uses of Enemy Property are governed by the Enemy Property Act of 1968, as revised from time to time (most recently in 2017).
• The Custodian of Enemy Property for India is allowed by the Enemy Property Act to keep any property that comes into his control, along with any rights, titles, interests, or benefits obtained from it.

The Enemy Property (Amendment and Validation) Act, 2017

• The act of 2017 has amended the definition and defines Enemy Property as any property owned, held, or managed on behalf of an enemy, an enemy subject, or an enemy business.
• The new amendment makes it impossible for those who left India after the partition and their descendants to ever claim the property their ancestors left behind in India.
• Due to the fact that Enemy Property is not covered by the law of succession, legal successors have no claim to it.

Provisions of the Enemy Property (Amendment and Validation) Act, 2017

• According to Section 2, Clause (I) of the Amended Act, for the words “an enemy subject”, the words “an enemy subject including his legal heir and successor whether or not a citizen of India or the citizen of a country which is not an enemy or the enemy, enemy subject or his legal heir and successor who has changed his nationality” shall be substituted and shall always be deemed to have been substituted.

• According to Section 2, Clause (II) of the Amended Act, for the words “an enemy firm”, the words “an enemy firm, including its succeeding firm whether or not partners or members of such succeeding firm are citizens of India or the citizen of a country which is not an enemy or such firm which has changed its nationality” shall be substituted and shall always be deemed to have been substituted.

• According to Section 2, Clause (III) of the Amended Act, for the words “does not include a citizen of India”, the words “does not include a citizen of India other than those citizens of India, being the legal heir and successor of the “enemy” or “enemy subject” or “enemy firm” shall be substituted and shall always be deemed to have been substituted

• According to Section 2, Clause (IV) of the Amended Act, “For the purposes of this clause, the expression “does not include a citizen of India” shall exclude and shall always be deemed to have been excluded those citizens of India, who are or have been the legal heir and successor of an “enemy” or an “enemy subject” or an “enemy firm” which or who has ceased to be an enemy due to death, extinction, winding up of business or change of nationality or that the legal heir and successor is a citizen of India or the citizen of a country which is not an enemy”

• According to Section 5 (A) of the Amended Act, the Custodian may, after making such inquiry as he deems necessary, by order, declare that the property of the enemy or the enemy subject or the enemy firm described in the order, vests in him under this Act and issue a certificate to this effect and such certificate shall be the evidence of the facts stated therein.”

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Why Were These Amendments Brought?

• The main goal of the changes was to halt claims of succession or transfer of property that had been abandoned by those who had fled to China and Pakistan after the wars.
• The changes made it illegal for any lawful heirs to assert ownership of Enemy Property. In this instance, minimizing the consequences of a court decision was the primary objective.
• “Recently, there have been many judgments by various courts that have negatively affected the authorities of the Custodian and the Government of India as given under the Enemy Property Act, 1968.
• The Custodian is having trouble defending his activities under the 1968 Enemy Property Act given how different courts have interpreted the statute in this way.

Supreme Court Judgements

Hamida Begum vs Custodian, M.K. Rangachari and Others:

• The caretaker of the Enemy Property was acknowledged by the court to be just its guardian, not its owner.
• Kishori Court, a residence in Mumbai’s affluent Worli Sea Face neighborhood, was owned by Hamida Begum.
• The home was auctioned off in the 1960s by the tax office to recoup municipal taxes.
• The transaction was canceled, but ownership was returned to the Custodian of Enemy Property.
• According to the government amendment, as of 1968, the Custodian is the owner of all Enemy Property.

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Criticism of the Enemy Property Act

• Every authorized sale of Enemy Property conducted by enemies since 1968 is void due to the 2017 modification to the Enemy Property Act.
• This implies that a person who, in good faith, purchased the property from an adversary when the transaction and purchase were legal now runs the danger of losing the asset.
• This issue can be legally contested under Article 14, which ensures the right to equality and shields citizens from the arbitrary actions of their government.
• Indian individuals who are the legal heirs of rivals are forbidden from inheriting the property of rivals, making them foes.
• Hearings in civil courts or by other authorities are not required in certain conflicts involving Enemy Property.
• Additionally, following the passage of the Bill, the only courts with jurisdiction over issues concerning Enemy Property will be the Supreme Court and the High Courts, severely restricting the alternatives open to anyone whose property rights have been violated

Conclusion

The Custodian of Enemy Property for India currently holds custody of 12,610 assets that were once owned by individuals from Pakistan and China. These properties have been appraised at a total value exceeding Rs 1 lakh crore. The Indian government can potentially employ these properties for a wide range of purposes, including public projects and initiatives. Additionally, the land within these properties may find utility in government housing projects like the PM Awas Yojna, subject to requisite approvals from the appropriate authorities.

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We hope that all your doubts regarding the Enemy Property will be cleared after going through this article. You can download the Testbook App now to check out various other topics relevant to the UPSC IAS Exam.