Enemy properties: Govt plans control for public purposes

New Delhi: The Centre is working on a bill proposing amendments to the Enemy Property Act that would give the Union government more powers over enemy properties, including its direct ownership for public purposes.

Under the 1968 Act, properties declared as enemy assets remain permanently vested with the custodian of the enemy property, with no room for inheritance or transfer.

The Act was amended in 2017 and the changes broadened the definition of 'enemy subject' and 'enemy firm'.


With the proposed amendments, the Centre plans to directly control enemy properties, sources said, asserting changes became necessary following a recent Supreme Court order in a case involving the Lucknow Nagar Nigam.

The government has proposed that enemy properties can be acquired by the Centre for public purposes or otherwise and that the property vested in its custodian shall be transferred to the central government free from all encumbrances, sources said. The amendments are proposed under section 5 of the Act. A bill regarding this could be taken up by the Union Cabinet in the coming week, sources said.

The bill could also be taken up in the budget session of Parliament.

Over the last six years, the Centre has monetised enemy properties worth ₹3,494.93 crore. Following the wars between India and Pakistan in 1965 and 1971, and the India-China War in 1962, the government assumed control of properties and businesses owned by those who adopted the nationality of Pakistan or China.

Under the Defence of India Rules, formulated under the Defence of India Act, 1962, enemy properties were vested with the custodian. The custodian is tasked with managing these assets on behalf of the Indian government.

In January 2018, the Union government informed the Lok Sabha that a total 9,280 enemy properties had been left behind by Pakistani nationals and 126 by Chinese nationals. In the same year, the Cabinet approved the procedure to sell enemy shares worth more than ₹3,000 crore. A total of 65,075,877 shares of 996 companies belonging to 20,232 shareholders were identified.

In 2020, the Centre formed a group of ministers headed by Amit Shah to monitor disposal of more than 9,400 enemy properties, estimated at about ₹1 lakh crore.