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Lucknow’s iconic Butler Palace, an Enemy Property on the banks of the Gomti River, is set to undergo a remarkable transformation after decades of abandonment and obscurity.

About Butler Palace

• Official Residence: Harcourt Butler, the Avadh Commissioner, had Butler Palace built when it was first put into service in 1915.
• Ownership by the Raja: The Mahmudabad rajas, a family with roots dating back to the 13th century and a long history of loyalty to the Mughals, eventually came to own it.
• Partition and Conflict: Following India’s division, Mohammad Amir Mohammad Khan, his son, remained in India, and Raja Mohammed Amir Ahmad Khan moved to Pakistan. Butler Palace was one of the properties that gave rise to legal problems.

Genesis of Enemy Property

• Post-War Migration: Following the India-Pakistan conflicts of 1965 and 1971, a large number of Indians migrated to Pakistan, which is where enemy property first appeared.
• Defense of India Rules: Established by the Defence of India Act, of 1962, these regulations gave the Indian government the authority to seize ownership of businesses and real estate held by those who choose to become citizens of Pakistan.
• Custodian of Enemy Property: The Custodian of Enemy Property for India (CEPI) was granted authority over these “enemy properties” by the central government.
• Similar Cases: Following the Sino-Indian War of 1962, a comparable scenario arose involving property left by individuals who moved to China.
• Tashkent Declaration: In 1966, India and Pakistan decided to commence talks over the return of properties and assets that had been seized by either side during the hostilities. This was a crucial development.
• Pakistan’s Disposition: It is noteworthy that all of these properties inside its borders were disposed of by the Pakistani government in 1971.

Legal Framework for Handling Enemy Property

• Enemy Property Act, 1968: This law, which was passed in 1968, stated that the Home Ministry’s Custodian of Enemy Property for India (CEPI) would be the continuing recipient of enemy property.
• Range of Properties: The Central Government’s agent, the CEPI, is in charge of a number of adversarial properties that are dispersed among several states. This covers both moveable and immovable assets, such gold and shares.
• 2017 amendment: The Public Premises (Eviction of Unauthorized Occupants) Act, 1971 and The Enemy Property Act, 1968 were amended by The Enemy Property (Amendment and Validation) Bill, 2016, which was passed by Parliament.

Scale and Geographic Distribution

• Large Inventory: India presently has 12,611 enemy properties in its possession, which are valued at more than ₹1 lakh crore.
• Revenue Generation: By selling enemy possessions, mostly movable assets like shares and gold, the government has made more than ₹3,400 crore in revenue.
• Remarkably, it is noteworthy that no enemy real estate has been sold thus far.
• Origin Breakdown: Of the 12,611 properties that fell under the jurisdiction of CEPI, 12,485 were connected to Pakistani nationals, while 126 were connected to Chinese people.
• Regional Distribution: West Bengal, Delhi, Goa, Maharashtra, and other states are in second place with 6,255 enemy properties, after Uttar Pradesh. Notably, a number of Indian states possess a portion of enemy properties, highlighting the wide geographic reach.