Saif Ali Khan Challenges Government's Claim Over Pataudi Family Properties Declared as Enemy Property

What Has Happened?

The Madhya Pradesh High Court has instructed actor Saif Ali Khan to approach the appellate authority regarding an order by the central government that declared historical properties of the Pataudi family in Bhopal, worth an estimated Rs 15,000 crore, as “enemy property.” These properties include several landmarks such as the Flag Staff House, where Saif spent his childhood, Noor-Us-Sabah Palace, Dar-Us-Salam, Bungalow of Habibi, Ahmedabad Palace, and Kohefiza Property.

Saif had been challenging the government's action since 2015, after the Custodian of Enemy Property declared these properties as enemy assets in 2014. The government’s claim centers on the migration of Abida Sultan, Saif's maternal grandmother, to Pakistan in 1950, which led to the properties being labeled as "enemy property." In 2016, the government issued an ordinance that explicitly stated that heirs, including Saif, would have no rights over these properties.

The Court, after hearing the matter, noted on December 13, 2024, that an appellate authority had been set up for adjudication of disputes concerning enemy property. The court advised the parties to file representations within 30 days. It is not clear whether Saif, who is currently recovering from a knife attack at his home, filed his appeal by January 12, 2025.

What Is Enemy Property?

Enemy property refers to assets that were left behind by individuals or entities who migrated to countries designated as "enemy nations" during periods of conflict, such as the 1962 Sino-Indian War, and the 1965 and 1971 India-Pakistan wars. Under the Defence of India Rules (1962) and the Defence of India Act, the Indian government took control of properties and businesses owned by individuals who adopted the nationality of countries considered enemies at the time, particularly Pakistan and China.

Once declared enemy property, these assets are vested with the Custodian of Enemy Property for India, a body responsible for managing these properties on behalf of the government. The properties can be auctioned or transferred, and the Custodian ensures that no legal claims can be made by descendants or heirs of those who migrated to enemy nations.

How Much Enemy Property Is There in India?

According to a report by Hansraj Ahir, the then Minister of State for Home, as of January 2, 2018, 9,280 enemy properties were left behind by Pakistani nationals and 126 by Chinese nationals. These properties, now under government control, have been subject to a disposal process since the Enemy Property (Amendment and Validation) Act, 2017, which further solidified the government's ability to retain ownership of these properties, irrespective of their legal heirs' nationality.

In 2018, the Union Cabinet approved the sale of enemy-owned shares worth over Rs 3,000 crore, and in 2020, a Group of Ministers (GoM) led by Union Home Minister Amit Shah started overseeing the disposal of 9,400 enemy properties estimated to be worth around Rs 1 lakh crore. The government's actions raise significant debates regarding property rights and national security. Critics argue that the law infringes on individual property rights, while supporters argue it is crucial for maintaining national security.