The government of India has announced its plan to sell over 2.91 lakh shares of ‘enemy property’ in 84 companies to individuals and corporates in tranches. These shares belong to the assets of individuals who had migrated to Pakistan and China, mostly between 1947 and 1962, and are classified as ‘enemy property’ under the Enemy Property Act, 1968.
First Tranche: 1.88 Lakh Shares in 20 Companies
The first tranche of the sale will involve about 1.88 lakh shares in 20 companies, including blue-chip firms like Wipro, Tata Steel, Cipla, ACC and Hindustan Unilever. The government has invited bids from 10 categories of buyers, including individuals, NRIs, Hindu Undivided Families (HUFs), Qualified Institutional Buyers (QIBs), trusts and companies by February 8, according to a public notice issued by the Department of Investment and Public Asset Management (DIPAM).
Expected Revenue: Rs 3,000 Crore
The government expects to raise about Rs 3,000 crore from the sale of ‘enemy property’ shares, which are currently held by the Custodian of Enemy Property for India (CEPI). The CEPI is an entity under the Ministry of Home Affairs that manages the movable and immovable assets of the enemies. The sale proceeds will be deposited in the Consolidated Fund of India.
Legal Background: Enemy Property Act, 1968
The Enemy Property Act, 1968 was enacted to regulate the administration and disposal of enemy property in India. The act defines an enemy as a country or a citizen of a country that committed an act of aggression against India or assisted an aggressor. The act empowers the CEPI to take over and manage the property of such enemies. The act was amended in 2017 to clarify that the heirs of the enemies will have no right over the enemy property even if they are Indian citizens or have changed their nationality.