States Allowed Putting the Enemy Property to Public Use
May 09, 2019 Real Estate News
In April, the government sold Rs 1874 crore of the enemy property after the central government permitted the state government to put the enemy property in use back in March. Over 9,400 such properties worth Rs 1 lac crore and Rs 3,000 crore worth of enemy shares were trying to be sold.
The guideline for the disposal of the enemy property under the enemy Property Order, 2018, states the usage of enemy property by the state government exclusively for public use.
In 1968, the government amended the law regarding the enemy properties in India. Those who left the country after the wars of 1962, 1965 and 1971, cannot claim their ownership on the properties in India. Even their heirs cannot claim the right on the property in India.
During 1939, at the onset of World War II, the Defence Act of India 1939 was enacted to lay down the rules of the Defence of India Rules. Under the law, an office was set up in Mumbai, the custodian of enemy properties in India, which was responsible for maintaining the enemy properties till peace was restored. But the office kept the custodian of the property even after 1945 when the World War ended.
After India’s war with China in 1962 and two wars with Pakistan in 1965 and 1971, the office took over the enemy properties. In 1968, the Indian government enacted the Enemy Property Act, which laid that all the enemy property will continue to be under the control of the custodian. The recently passed bill amends specific provisions of this 50-year-old legislation.
How does it change the property holding now:
The guideline for the disposal of the enemy property under the enemy Property Order, 2018, states the usage of enemy property by the state government exclusively for public use.
In 1968, the government amended the law regarding the enemy properties in India. Those who left the country after the wars of 1962, 1965 and 1971, cannot claim their ownership on the properties in India. Even their heirs cannot claim the right on the property in India.
During 1939, at the onset of World War II, the Defence Act of India 1939 was enacted to lay down the rules of the Defence of India Rules. Under the law, an office was set up in Mumbai, the custodian of enemy properties in India, which was responsible for maintaining the enemy properties till peace was restored. But the office kept the custodian of the property even after 1945 when the World War ended.
After India’s war with China in 1962 and two wars with Pakistan in 1965 and 1971, the office took over the enemy properties. In 1968, the Indian government enacted the Enemy Property Act, which laid that all the enemy property will continue to be under the control of the custodian. The recently passed bill amends specific provisions of this 50-year-old legislation.
How does it change the property holding now:
- As the bill has come into effect, any enemy property transfer that that took place before that time becomes null and void.
- The old law only stated that the residents of the enemy country were debarred from stating their right in the property in India. But the new law also bars their heir to claim their rights on the property.
- The civil courts do not have any right to hear any case made against the enemy property. Only the custodian has the right to do so.
- The law prohibits the transfer of any property to the enemy.
- Earlier the custodian was responsible for maintaining the enemy if they are living in India, from the income derived from their property. They are not accountable anymore.
- Under the provision of the Tashkent Declaration, Pakistan was disposed of all enemy properties in India. After the war of 1965, both the countries have decided to sign the declaration and agreed to discuss the possibility of returning the enemy property in control of each other’s side.
- Currently, there are over 16,000 enemy properties in India, and the identification of some are still under. There is a chance that there are more enemy properties in India.
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