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Enemy property: the Enemy Property Act, 1968 and its Custodian

By CAShorts DeskPublished Sources: Enemy Property Act, 1968; Gazette of India (Act 3 of 2017); PRS Legislative Research; PTI via The Federal and ThePrint; ETV Bharat

Why in news: On 15 October 2026, West Bengal's Chief Minister said the Centre would make the State government custodian of enemy properties in the State.

Enemy property: the Enemy Property Act, 1968 and its Custodian
Illustration (AI-generated)

Enemy property is property left in India by people who took the nationality of a country that fought India, Pakistan or China. A Custodian under the Union Home Ministry holds and sells it under the Enemy Property Act, 1968. On 15 October 2026, West Bengal's Chief Minister said the State would become its custodian there.

Syllabus: GS2 · Federalism & Local Government; Prelims · Polity & Governance; GS2 · Government Policies

Why this matters for UPSC

GS2 polity and governance: Prelims can ask what the Enemy Property Act, 1968 provides, who the Custodian answers to and where sale proceeds go; Mains, whether the 2017 amendment balances national security with the rights of Indian heirs.

In short

Enemy property is property held by or for a national or firm of a country that committed aggression against India, vested by law in a Central Custodian.

From vesting to saleContinuedvestingPermanentvestingSale powerCertificateof saleProceeds toCentre

The enemy property regime should finish monetising long-idle assets transparently while giving genuine owners a fair, time-bound hearing before the Centre and the High Court.

Why it matters

Consider a family in Uttar Pradesh or West Bengal whose grandfather left for Pakistan after Partition while his brother stayed. The house the grandfather owned may still be listed as enemy property. Under the 2017 law, his Indian relatives cannot inherit it, buy it from him or win it back in a civil court. For the government, the same house may be an idle, encroached asset that can now be auctioned and turned into revenue. The question underneath is how far a country may limit property rights in the name of security, decades after the wars that justified the seizure ended.

Prelims pointers

  • Enemy Property Act, 1968: Act 34 of 1968, deemed in force from 10 July 1968; it continued vesting made under the Defence of India Rules, 1962 and 1971.
  • Section 3: the Central Government appoints the Custodian, Deputy and Assistant Custodians by notification in the Official Gazette.
  • Section 8A (inserted 2017): the Custodian may sell or dispose of enemy property with the Centre's prior approval; proceeds go to the Consolidated Fund of India.
  • Section 18: a person aggrieved by a vesting order may represent to the Central Government within 30 days of the order.
  • Section 18C: appeal against the Centre's section 18 order lies to the High Court within 60 days, extendable by another 60.
  • Section 18A: income the Custodian received from an enemy property is never returned, even after the property is sold or handed back.
  • The 2017 amendment also amended the Public Premises (Eviction of Unauthorised Occupants) Act, 1971, making the Custodian an Estate Officer for enemy property.

Practise a UPSC-style question

With reference to enemy property in India, consider the following statements:

1. The Custodian of Enemy Property for India functions under the Ministry of External Affairs.

2. The Enemy Property Act, 1968 continued the vesting of property seized under the Defence of India Rules of 1962 and 1971.

Which of the statements given above is/are correct?

  1. (a) 1 only
  2. (b) 2 only
  3. (c) Both 1 and 2
  4. (d) Neither 1 nor 2
Show the answer

Answer: (b) 2 only

Answer: (b) 2 only. The Custodian is a Home Ministry office; the 1968 Act carried forward wartime vesting.

Statement 1: incorrect. The Custodian of Enemy Property for India works under the Union Ministry of Home Affairs, not External Affairs.

Statement 2: correct. The 1968 Act provides for continued vesting of enemy property vested under the Defence of India Rules, 1962 and 1971.

Eliminate: Statement 1 names the wrong ministry, so it is incorrect. Out: (a), (c).

Eliminate: Statement 2 is the Act's stated purpose, so it is correct. Out: (d).

Trap: Swapped attribution. Enemy property involves foreign countries, so the question pins the Custodian on the External Affairs ministry instead of Home Affairs.

Remember: Custodian of Enemy Property = Home Ministry; 1968 Act continues wartime vesting.

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