Enemy Property Act

Source: This post, enemy property act, has been created based on the article “Pervez Musharraf’s ancestral land in UP to be auctioned under Enemy Property Act: What it means”, published in Indian Express on 9^th Sep 2024.

What is the news?

The Indian government has announced plans to auction a parcel of land in Uttar Pradesh, previously owned by the family of former Pakistan President Pervez Musharraf. The land is being sold under the Enemy Property Act.

What are the provisions related to enemy property act?

The word “enemy” signifies any country that has committed an act of aggression or declared war against the Union of India,

The law defines enemy property as properties left behind by people who migrated to Pakistan and China and acquired their citizenship, after the 1947 partition and after subsequent wars (1965 and 1971) with these countries.

1) Initially, these properties were taken over by the Indian government Under the Defence of India Rules (1962) and vested with the Custodian of Enemy Property for India (CEPI).

2) Enemy Property Act, 1968: In 1968, The Enemy Property Act was enacted to formalize the process. It allowed the government to regulate and appropriate properties belonging to those who took Pakistani or Chinese nationality.

Besides real estate, enemy property may also include bank accounts, shares, gold, and other assets of such individuals.

3) 2017 amendment: The act was amended in 2017 to expand the definition of “enemy”.

Now the definition included the legal heirs (in India) of those who migrated and the law of succession does not apply to enemy property. It means their heirs in India cannot make any claim over the enemy property. The properties remain under the Custodian’s control.

The Act also made it clear that once a property is declared ‘enemy property’, it remains so.

Sales of such properties are overseen by the Ministry of Home Affairs or the Custodian of Enemy Property of India (CEPI), as disinvestment proceeds deposited into government accounts.