What is Enemy Property Act, law threatening Saif Ali Khan’s Rs 15,000-crore 'Pataudi family' legacy?

The Enemy Property Act empowers the central government to claim properties owned by individuals who migrated to Pakistan post-Partition. (X/moulanash)

The Enemy Property Act is back in the spotlight, with reports suggesting that Bollywood actor Saif Ali Khan’s ancestral properties worth approximately Rs 15,000 crore could fall under its ambit.

According to lawyers quoted by news agency PTI, the fate of these properties owned by Bhopal's erstwhile rulers and inherited by actor Saif Ali Khan and his family remains in limbo due to uncertainty over filing an appeal against an order of the Office of the Custodian of Enemy Property.

The properties inherited by Saif Ali Khan and his family include Noor-Us-Sabah Palace, Dar-Us-Salam, Bungalow of Habibi, Ahmedabad Palace and Flag Staff House.

If an appeal is not filed by Bhopal Nawab's successors against the order of the Office of the Custodian of Enemy Property for India, the properties may come under the Centre's control, they said.

It is not yet clear whether they have filed an appeal before the Mumbai-based Office of the Custodian of Enemy Property, which comes under the Union home ministry, following a Madhya Pradesh High Court order of December 13, 2024 on the issue.

Why Pataudi properties are called ‘enemy properties’

Saif Ali Khan's mother and noted actress Sharmila Tagore (Pataudi) and others had challenged in the HC the order dated February 24, 2015, of the Custodian of Enemy Property for India that termed the property of Bhopal Nawab as "Enemy Property".

The authority under the Home ministry had given its ruling on the ground that Nawab Muhammad Hamidullah Khan's eldest daughter Abida Sultan Begum migrated to Pakistan following Partition. Therefore, all such properties that she was supposed to succeed are enemy properties and vest in the Custodian of Enemy Property for India.

However, senior advocate and expert on merger of Nawab properties, Jagdish Chhavani, quoted an order dated January 10, 1962 that after the death of Hamidullah Khan in 1960, the Government of India recognised Sajida Sultan Begum "as such ruler, is the sole successor to all private properties, movable and immovable, held by Nawab Hamidullah. And the GoI have no objection to such properties being transferred to Sajida Sultan Begum."

Sajida Sultan Begum is the second daughter of Nawab Hamidullah and as the eldest daughter (Abida) migrated to Pakistan, Sajida became the owner of all such properties, he told PTI.

Later, Sajida's son Mansoor Ali Khan Pataudi (Tiger Pataudi) became the successor of these properties and after him Saif Ali Khan is the owner of these properties, estimated to be valued at nearly Rs 15,000 crore.

But after the order of Custodian of Enemy Property, the ownership title became disputed which was challenged by Sharmila Tagore (Saif's mother and Mansoor Ali Khan Pataudi's wife) in the high court in 2015.

During hearing on December 13, 2024, the government advocate informed "that in the year 2017, the Act, namely the Enemy Property Act 1968, has been repealed from a retrospective date and the appellate authority has been constituted for adjudication of disputes in regard to enemy property."

What is Enemy Property (Amendment and Validation) Act, 2017

The Enemy Property Act, 1968, was enacted following the Indo-Pak wars of 1947, 1965, and 1971. The legislation aimed to take control of the properties and assets left behind by individuals who migrated to Pakistan or China during and after these conflicts. Such properties were declared “enemy properties” and vested in the Custodian of Enemy Property for India, a government-appointed authority tasked with managing and preserving these assets.

The Act defines an “enemy” as any individual or entity from a country with which India is at war. Properties left behind by such individuals were considered “enemy properties.” Over the decades, the Act has been amended to tighten its provisions, most notably in 2017.

Key provisions of the Act

1. The 2017 amendment explicitly states that enemy properties cannot be claimed through inheritance by the legal heirs of the original owners, even if they are Indian citizens. This was a significant departure from the earlier interpretation, where heirs could challenge the Custodian’s claim.

2. Enemy properties are deemed to belong to the Government of India and cannot be transferred, sold, or alienated without government approval.

3. The Act’s scope was expanded to include not just immovable properties like land and buildings but also movable assets such as shares, jewellery, and bank accounts.

Why Act has been mired in controversy?

1. The retrospective nature of the 2017 amendment has been criticised for overturning settled legal cases and depriving families of inheritance rights.

2. Families with ancestral properties have faced challenges in proving that their assets are not linked to individuals classified as “enemies.” The burden of proof lies heavily on the claimants.

3. The Act’s broad definitions and provisions have led to ambiguities, with some cases alleging misuse by authorities to target specific individuals or families.