Can ancestor's migration cost you crores? Saif's property case explains how

Business Standard

7 hours ago

In a landmark ruling with far-reaching implications for cross-border inheritance, the Madhya Pradesh High Court last week declared significant portions of Saif Ali Khan's ancestral estate in Bhopal as 'enemy property' under the Enemy Property Act, 1968. The judgment effectively bars the Bollywood actor and his family from claiming rights over properties valued at over ₹15,000 crore.
The court's decision stems from the historical migration of Begum Abida Sultan, the actor's great-aunt and eldest daughter of Nawab Hamidullah Khan, who moved to Pakistan in 1950 post-Partition and later served as a Pakistani diplomat. Her migration, the court ruled, automatically brought her Indian properties under the scope of the Enemy Property Act, which vests such assets with the Custodian of Enemy Property for India, a body under the Ministry of Home Affairs.
The Property Dispute
At the heart of the dispute are several iconic properties in Bhopal, including the Flag Staff House, Noor-Us-Sabah Palace, and Dar-us-Salam, which were part of the sprawling estate of the erstwhile Nawab of Bhopal. Saif Ali Khan, a descendant through Nawab Hamidullah's younger daughter Sajida Sultan, had previously been named as a legal heir in a 2000 inheritance ruling. However, the High Court has now set aside that decision, directing a fresh civil trial to re-determine the line of succession.
While the inheritance trial may continue, the court clarified that once a property is vested under the Enemy Property Act, it is no longer open to succession, sale, or transfer by heirs, regardless of their nationality or residence status.
1. What is the Enemy Property Act, and why does it matter for families with cross-border roots?
The Enemy Property Act, 1968, originally enacted in the backdrop of India's wars with Pakistan and China, allows the Indian government to seize and manage the assets of nationals from enemy countries. A 2017 amendment made the law even more stringent by barring any legal recourse for heirs and giving the government the power to sell or dispose of such assets.
The Enemy Property Act, 1968 allows the Indian Government to vest (take over) properties in India that belong to individuals or legal heirs who are nationals of an enemy country, mainly Pakistan or China. The Custodian of Enemy Property for India (CEPI), a department under the Ministry of the Home Affairs, manages these assets. Once vested, enemy property cannot be claimed back," said Abhilash Pillai, Partner, Cyril Amarchand Mangaldas/
Legal experts say the law focuses on the nationality of the original titleholder—in this case, Abida Sultan—rendering any claims by subsequent Indian-born heirs invalid.
'The court's ruling reinforces the strict interpretation of the Enemy Property Act. Even legitimate Indian citizens can lose access to ancestral property if their ancestor was declared an enemy national,' said Alay Razvi, Managing Partner at Accord Juris.
Why was Saif Ali Khan's ancestral property declared 'enemy property'?
Because his ancestors forming part of the Royal Family - Nawab of Bhopal - migrated to Pakistan after Partition, hence, the property was classified as 'enemy property'.
3. Can Indian citizens inherit property if one ancestor moved to Pakistan decades ago?
No, pursuant to Section 5B of EPA, even if the Indian citizen is a direct descendant, they cannot inherit if the person who originally owned the property became an enemy national, said Pillai. Though Saif and his family remained Indian citizens, the law views Abida Sultan as the last rightful owner, and since she became a Pakistani national, her share of the estate got permanently vested in the Custodian of Enemy Property.
Result: No inheritance, no compensation—just a 75-year-old legacy caught in the gears of a wartime law.
If the property is classified as 'enemy property, Indian citizens cannot inherit it
Even if:
You were born and raised in India
You never had contact with the ancestor who migrated
You maintained, paid taxes on, or lived on the property
If the original titleholder became an enemy national, the property is frozen—transferred to the government, and not open to inheritance.
Does this mean families in India can lose inherited property even if they've lived here for generations?
Yes, if the original owner was declared an 'enemy', the property is permanently vested in the Custodian, regardless of how long the Indian heirs lived there or managed it. The law focuses solely on the nationality of the original owner.
"Under the Enemy Property Act, 1968, if an ancestor is declared an 'enemy' typically someone who migrated to Pakistan or China during or after the Partition their properties in India vest automatically with the Custodian of Enemy Property.
This means that Indian citizens who are descendants or heirs cannot inherit or claim ownership over such enemy properties, even if they themselves have never left India.
However, if the property is not classified as 'enemy property' or if the ancestor was not formally declared an enemy, normal inheritance laws apply. In cases where properties have been vested with the Custodian, heirs have limited legal recourse and cannot assert ownership rights under regular succession laws until the enemy property status is revoked.
Thus, the presence of an ancestor who migrated to Pakistan often legally bars descendants from inheriting the ancestr Under the *Enemy Property Act, 1968*, once a property is declared 'enemy property,' it vests absolutely in the Custodian of Enemy Property for India. The Custodian holds and manages these properties on behalf of the Government of India," said Razvi.
But what if the heirs did not know?
Ignorance of the law doesn't help here. In 2017, the law was amended retroactively, closing all loopholes. Courts can't overturn enemy property classifications, and families can't argue that they were unaware.
Even legitimate legal heirs can't stake a claim—the law overrides personal wills, succession rights, and property tax records.
"Under the Enemy Property Act, 1968, if an ancestor is declared an 'enemy' typically someone who migrated to Pakistan or China during or after the Partition their properties in India vest automatically with the Custodian of Enemy Property.
This means that Indian citizens who are descendants or heirs cannot inherit or claim ownership over such enemy properties, even if they themselves have never left India.
However, if the property is not classified as 'enemy property' or if the ancestor was not formally declared an enemy, normal inheritance laws apply. In cases where properties have been vested with the Custodian, heirs have limited legal recourse and cannot assert ownership rights under regular succession laws until the enemy property status is revoked.
Thus, the presence of an ancestor who migrated to Pakistan often legally bars descendants from inheriting the ancestr Under the *Enemy Property Act, 1968*, once a property is declared 'enemy property,' it vests absolutely in the Custodian of Enemy Property for India. The Custodian holds and manages these properties on behalf of the Government of India," explained Alay Razvi, Managing Partner, Accord Juris.
What happens to such 'enemy properties' can they be sold, auctioned, or claimed back?
Razvi explains this as follows:
The Custodian has the authority to manage, sell, or lease the enemy properties. The proceeds from sale or lease go to the Government treasury.
The original owners and their heirs cannot sell, transfer, or otherwise dispose of these properties, as their ownership rights stand extinguished by operation of law.
The only way an heir or claimant can attempt to regain such property is through legal challenges, often arguing that the property was wrongly classified as enemy property or that the ancestor was not an enemy. Such challenges are difficult and rare to succeed in because the Act vests absolute rights in the Custodian once declared.
The property does not automatically revert to heirs even if they were unaware of the classification.
Enemy properties are controlled by the Government through the Custodian, can be sold or auctioned by the Custodian, but cannot be claimed or inherited by private heirs unless successfully challenged in court.
Saif Ali Khan's family has now been told to restart their claim at a lower court, but with the odds stacked against them.
Financial lessons for families:
If your family has cross-border roots—especially linked to Partition-era migrations—get a legal audit of ancestral properties. Here's what you can do:
Check title deeds for prior ownership trail.
Review government notifications—was the property ever listed under enemy property?
Consult a property lawyer who specializes in custodial disputes or pre-Partition inheritance cases.
Avoid investing in disputed properties, even if they appear "occupied" by current heirs.
In Saif Ali Khan's case, royal lineage couldn't stand up to a cold law from 1968. For ordinary Indian families with similar cross-border connections, the stakes are no less emotional—or financial.