The Enemy Property Act, 1968:

Why in News?  The Indian government has begun to auction properties belonging to erstwhile citizens of the country who now hold Pakistani and Chinese passports.

About Enemy Property Act, 1968:

The Enemy Property Act, 1968, in India is a law that was enacted to regulate and manage the properties left behind by people who migrated to Pakistan and China after the partition of India in 1947 and the Indo-China war in 1962.

Background: After the partition of India in 1947, a large number of people migrated to Pakistan, leaving behind their properties in India. Similarly, during the Indo-China war in 1962, some people migrated to China. These properties were classified as “enemy property.”

Definition: Enemy property refers to any property belonging to, held by, or managed on behalf of an enemy, an enemy subject, or an enemy firm.

Custodian of Enemy Property: The Act established the Custodian of Enemy Property for India, who is responsible for managing and preserving these properties. The Custodian acts on behalf of the Government of India.

Scope: The act covers all movable and immovable properties, including land, buildings, shares, debentures, bank balances, and more.

Amendments: The Enemy Property Act has been amended several times, notably in 2017. The amendments aimed to further clarify and strengthen the government’s powers in managing enemy properties. Key changes included:

• No transfer of any enemy property by the enemy if such transfer has been made after the Act came into force.
• The Custodian has the power to continue holding and managing the enemy property even if the enemy dies, ceases to be an enemy due to an agreement between the countries, or becomes an Indian citizen.
• Bars civil courts and other authorities from entertaining disputes related to enemy property.

Rationale: The primary objective of the Act is to ensure that the properties left behind by people who migrated to enemy countries do not benefit the enemy and are used for the benefit of the nation.

Criticism and Controversy: The Act and its amendments have faced criticism, particularly from the descendants of those who migrated, as they claim the right to inherit these properties. Critics argue that the law violates the right to property and is retroactive.

About the Custodian of Enemy Property for India (CEPI):

The Custodian of Enemy Property for India (CEPI) is a government department under the Ministry of Home Affairs, India.

Function: It manages properties classified as “enemy property” under the Enemy Property Act, 1968.

Origin of Properties: These properties are primarily those left behind in India by Pakistani nationals after the 1965 war.

Powers: CEPI has the authority to:

• Take possession of such properties.
• Manage and administer them.
• Generate income from them (e.g., rent).
• Dispose of them as per the government’s directives (though selling is restricted).

Additional Information:

CEPI has a head office in Delhi and branch offices in Mumbai, Kolkata, and Lucknow.