The occupant of enemy property with a value up to ₹1 crore will have the first right of refusal in case of disposal by the government. In case of their refusal, then the said property will be e-auctioned.

Enemy properties are those left behind by people who took citizenship of Pakistan and China after leaving India during the partition and post the 1962 and 1965 wars.

The government has notified an order to amend the guidelines for the disposal of the Enemy Property Order, 2018. Earlier, it was prescribed that, in case of occupied enemy property, the Custodian shall sell it to the existing occupier or otherwise as may be decided by the Central Government and at the rate as determined by the Enemy Property Disposal Committee.

Now, the revised guidelines say in the case of occupied enemy property, the process for eviction of it will be initiated with the help of the District Magistrate or Deputy Commissioner before the sale of the properties. “Valued below ₹1 crore, the Custodian shall offer for purchase to the occupant first, and if the occupant refuses an offer of purchase, then the enemy property shall be disposed off in accordance with the procedure (in the guidelines),” the revised framework said.

The property with a value less than ₹1 crore and refused by the present occupant will be disposed of according to guidelines for properties with a value of ₹1 crore or more. “Having valuation of ₹1 crore and below ₹100 crore, shall be disposed of by Custodian of Enemy Property for India through e-auction or otherwise as may be decided by Central Government and at the rate as determined by the Enemy Property Disposal Committee,” guidelines said. Further, the e-auction platform of public enterprise, the Metal Scrap Trade Corporation Limited, will be used by the Custodian of Enemy Property for India to e-auction enemy properties.

Written answer in Lok Sabha shows that 12,611 establishments, or enemy property, were left behind by people who took citizenship of Pakistan and China. Of these, 12,485 are related to Pakistani nationals and 126 to Chinese citizens. Uttar Pradesh has a maximum of 6,255 enemy properties, followed by over 4,000 in West Bengal and around 650 in Delhi.

Earlier this year, the government had said that it has earned over ₹3,400 crore from the disposal of enemy properties, mostly movable assets like shares and gold. The Custodian of Enemy Property for India (CEPI) realised a total of ₹3,407.98 crore from the disposal of enemy properties, which include over 7.52 crore shares for ₹2,708.9 crore of 152 companies in 2018-19, 2019-20, 2020-21 and 2021-22, and ₹699.08 crore as revenue receipts .Altogether, 1,699.79 grams of vested gold has also been sold for ₹49,14,071 and 28.896 kilogram of silver ornaments have been disposed of for ₹10,92,175 in January 2021 through the Government of India Mint, Mumbai as per provisions of the Enemy Property Act

The enemy properties are vested with the CEPI, an authority created under the Enemy Property Act. Meanwhile, an Enemy Property Information System has been developed for the effective preservation, management and speedy disposal of enemy properties. It is available to all stakeholders dealing with the subject matter.

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