The Gujarat High Court on Tuesday questioned the Centre about the possibility of reconsidering its decision to declare Kailas Cooperative Society Ltd near Ashram Road as enemy property. The court noted that the residents have been anxious about their ownership rights for more than 70 years since purchasing the plots.
Background of the Case
The Centre initiated the process of declaring the land parcel as enemy property in 2006 under the Enemy Property Act, 1968. This action came more than half a century after the land was purchased from Mohammedmiya Gulamhussain Kagdi, a resident of Panchpatti area in Wall City of Ahmedabad, who died in India as an Indian citizen.
According to case details, the land changed hands twice before the society acquired it in 1954 on a 999-year lease, extendable by another 999 years. Kagdi's son, Fazlurehman, and his two daughters, Fatimabibi and Aisabibi, migrated to Pakistan in 1967.
Legal Proceedings
The Custodian of Enemy Property for India issued summons to the society in 2006 under the Enemy Property Act, 1968, regarding the declaration of a part of the land as enemy property. The grounds were that Kagdi's heirs, who were legal owners of the land, had migrated to Pakistan. The society responded to the summons.
In 2013, the custodian passed an order under Section 12 of the Act for the issuance of certificates restraining property holders from further transferring the land. The society members became aware of these restrictions in 2022, when the custodian asked them to enter into leave-and-licence agreements with the authority, barred them from alienating the property, and directed them to pay rent.
Society's Challenge
The residents approached the High Court, challenging the Centre's attempt to claim ownership by declaring the land as enemy property. In April 2025, the custodian began measuring the land, prompting the society to raise the issue again before the HC. The society expressed apprehension that the central government would enter its name in the revenue records, as provided under the Act, and evict them from the land. The HC subsequently stayed the custodian's action.
On Tuesday, the society submitted that the land had been taken on a permanent lease from an Indian citizen whose children later migrated to Pakistan, which did not render the property an enemy property. It also challenged the 2013 certificates, arguing that society members were not heard and that documents establishing the society's ownership rights had not been taken into consideration.
Court's Observations
Justice Nirzar Desai questioned the central government on how the property could be treated as enemy property when the lease was effectively for 2,000 years and third-party rights had already been created in favour of Indian nationals using the land. The judge observed that invoking the Enemy Property Act in such circumstances could backfire, as Indian citizens would ultimately suffer the consequences.
The HC asked the central government's counsel to seek instructions from the authorities on reconsidering the entire issue in light of the documents submitted by the society and passing a fresh order. Alternatively, the Centre could file an affidavit detailing the steps taken since the first summons was issued in 2006 and justify the issuance of the certificates.
Next Hearing
The matter has been posted for further hearing after two weeks. The society further questioned the central authority's conclusion that the land belonged to Kagdi's three children who migrated to Pakistan. Its counsel also criticised the decision to convert the society's effective 2,000-year lease into a mere leave-and-licence arrangement.
