The Enemy Property Act, 1968
The Enemy Property Act, 1968, Act No. 34 of 1968, was enacted by Parliament, dated 20 August 1968, and deemed to have come into force on 10 July 1968. It continues the vesting of enemy property in the Custodian of Enemy Property for India, restricts transfers and succession rights, and the supplied text incorporates later amendments.
What the law governs
The Enemy Property Act, 1968 applies throughout India. It also applies to Indian citizens outside India and to overseas branches and agencies of companies or corporate bodies registered or incorporated in India.
The law covers property belonging to, held by, or managed on behalf of an enemy, enemy subject or enemy firm. Its central purpose is to keep qualifying property vested in the Custodian of Enemy Property for India after the expiry of the Defence of India Rules, 1962 and the Defence of India Rules, 1971.
Who may be affected
The Enemy Property Act, 1968 may affect:
- Buyers considering property that may be classified or recorded as enemy property.
- People claiming through an enemy, enemy subject or enemy firm as legal heirs or successors.
- People dealing with property already vested or deemed vested in the Custodian of Enemy Property for India.
- Companies, firms and other persons holding or managing relevant property or money.
A legal heir or successor may remain within the definition even if that person is an Indian citizen, a citizen of a country that is not an enemy, or has changed nationality.
Key property provisions
- Enemy property already vested under the Defence of India Rules continues to vest in the Custodian of Enemy Property for India.
- Vesting continues despite death, extinction, winding up of a business, change of nationality, or the citizenship of a legal heir or successor.
- Enemy property includes rights, title, interests and benefits arising from the property.
- The Custodian may conduct an inquiry, declare by order that identified property vests in the Custodian, and issue a certificate as evidence of the facts stated in it.
- Succession law, custom and usage do not apply to enemy property. Legal heirs and successors do not acquire rights, title, interests or benefits in such property through succession.
- An enemy, enemy subject or enemy firm has no right to transfer property vested in the Custodian. Any such transfer is void and is treated as always having been void.
Administration and enforcement
The Central Government may appoint the Custodian of Enemy Property for India, Deputy Custodians, Assistant Custodians and Inspectors of Enemy Property through notifications in the Official Gazette. The listed provisions also cover returns, registers, fees, court jurisdiction, High Court appeals, penalties, company offences, rule-making and continuation of certain earlier orders.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can I safely buy property that was transferred by an enemy after it vested in the Custodian?
The Enemy Property Act, 1968 states that an enemy, enemy subject or enemy firm has no right to transfer property vested in the Custodian of Enemy Property for India. Such a transfer is void and is treated as always having been void.
Can an Indian citizen inherit enemy property as a legal heir?
The Enemy Property Act, 1968 states that succession law, custom and usage do not apply to enemy property. A legal heir or successor does not gain rights in the property merely because the person is an Indian citizen.
Does enemy property stop being vested if the original owner dies or changes nationality?
No. Property vested in the Custodian of Enemy Property for India continues to remain vested despite death, extinction, winding up of business, change of nationality, or the citizenship of a legal heir or successor.
How can the Custodian establish that a property is vested as enemy property?
The Custodian of Enemy Property for India may make an inquiry, declare by order that the identified property vests in the Custodian, and issue a certificate. The certificate is evidence of the facts stated in it.
