The Enemy Property (Amendment and Validation) Bill, 2016

The Centre has for the third time promulgated an ordinance related to enemy properties. The ordinance amends a nearly 50-year-old law to guard against claims of succession or transfer of properties left by people who migrated to Pakistan and China after the wars.

Background:

• The first ordinance was issued on January 1, and another one was issued on April 2. The promulgation of the ordinance for the third time was necessitated as ‘The Enemy Property (Amendment and Validation) Bill, 2016′, to replace the ordinance, is pending in the Rajya Sabha and to give continuity to the second executive order issued in April.
• The bill was passed by Lok Sabha on March 9. However, it could not get Rajya Sabha nod from where it was referred to a Select Committee. The Committee has recently submitted its report. An ordinance lapses after 42 days from the day a session begins unless a bill to replace it is approved by Parliament.

Enemy Properties Bill:

Enemy Properties Bill includes amendments to plug the loopholes of the Enemy Property Act, 1968. The amendments ensure that the enemy properties that have been vested in the Custodian remain so and do not revert to the enemy subject or enemy firm.

The amendments include:

• Once an enemy property is vested in the Custodian, it shall continue to be vested in him as enemy property irrespective of whether the enemy, enemy subject or enemy firm has ceased to be an enemy due to reasons such as death and others.
• The law of succession does not apply to enemy property. There cannot be transfer of any property vested in the Custodian by an enemy or enemy subject or enemy firm and that the Custodian shall preserve the enemy property till it is disposed of in accordance with the provisions of the Act.
• A new section has been inserted in the Bill to say that “the Custodian, may, after making such inquiry as he deems necessary, by order, declare that the property of the enemy or the enemy subject or the enemy firm described in the order, vests in him under this Act and issue a certificate to this effect and such certificate shall be the evidence of the facts stated therein”.  

Enemy properties act:

The Enemy Property Act was enacted in the year 1968. It provided for the continuous vesting of enemy property in the custodian. The Union Government through the Custodian of Enemy Property for India is in possession of enemy properties spread across many states in the country.

• To ensure that the enemy property continues to vest in the Custodian, appropriate amendments were brought in by way of an Ordinance in the Enemy Property Act, 1968 by the then Government in 2010.
• However, the ordinance lapsed on 6 September 2010. Later on 22 July 2010, it was introduced in Lok Sabha in form of a Bill but was withdrawn and another bill with modified provisions was introduced in the Lok Sabha on 15 November, 2010. This bill was thereafter referred to the Standing Committee. However, the said bill could not be passed during the 15th term of the Lok Sabha and it lapsed.

Enemy properties:

• In the wake of the Indo-Pak war of 1965 and 1971, there was migration of people from India to Pakistan. 
• Under the Defence of India Rules framed under the Defence of India Act, the Government of India took over the properties and companies of such persons who had taken Pakistani nationality. 
• These enemy properties were vested by the Union Government in the Custodian of Enemy Property for India.

Background:

After the 1965 war, India and Pakistan signed the Tashkent Declaration on 10 January 1966. The Tashkent Declaration inter alia included a clause, which said that the two countries would discuss the return of the property and assets taken over by either side in connection with the conflict. However, the Government of Pakistan disposed of all such properties in their country in the year 1971 itself.