In a major move to prevent transfer of enemy property and allows state appointed custodian to sell it off, the government has introduced a Bill to amend retrospectively several provisions of the Enemy Property Act of 1968. Minister of State for Home Affairs Kiren Rijiju moved the Enemy Property (Amendment and Validation) Bill in Lok Sabha to replace an Ordinance that was promulgated on January 2016. The Ordinance seeks to amend the Enemy Property Act, 1968 and the Public Premises (Eviction of Unauthorised Occupants) Act, 1971.

Background

The central government had designated some properties belonging to nationals of Pakistan and China as “enemy properties” during the 1962, 1965 and 1971 conflicts with the respective countries and vested these properties in the custodian of Enemy Property for India, an office instituted under the central government.

What’s New?

• While Enemy Properties Act of 1968 defined an “enemy” as a country and its citizens that committed external aggression against India namely Pakistan and China, the Bill expands this definition to include legal heirs of enemies even if they are citizens of India or of another country which is not an enemy, nationals of an enemy country who subsequently changed their nationality to that of another country.
• As against the definition of “enemy property” as laid down in the old Act as a “property that belonged to or was managed on behalf of an enemy”, the Bill clarifies that even in case of death of the enemy, the legal heir is an Indian or citizen of a country that is not an enemy and enemy changes his nationality to that of another country, these properties will continue to vest with the Custodian.
• The new Bill allows enemy property to be returned to the owner only if an aggrieved person applies to the government and the property is found not to be an enemy property.
• The Bill also allows the custodian to sell or dispose of enemy property. The Custodian may do this within a time period specified by the central government, irrespective of any court judgments to the contrary.
• The Bill bars civil courts and other authorities from entertaining cases against enemy properties or against actions of the central government or the Custodian under the Act.
• The Bill also removes the provision that empowers the custodian to maintain the enemy and his family if they are in India from the income derived from the property.