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Explainer: What is Enemy Property Act That Threatens Saif Ali Khan’s Rs15,000 Crore Inheritance

A decades-old law, Enemy Property Act rooted in Partition-era politics, resurfaces to challenge Saif Ali Khan’s royal estate claim

Japneet Lamba by Japneet Lamba
7 July 2025
in Legal
enemy property act that took away saif ali khan's inheritance

enemy property act that took away saif ali khan's Rs. 15,000 Crore inheritance

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Bollywood actor Saif Ali Khan finds himself in the middle of a renewed legal storm as the Madhya Pradesh High Court sets aside a decades-old ruling that had affirmed his family’s right to a sprawling royal estate in Bhopal. The latest judgment, which orders a fresh trial into the ownership dispute, has once again cast doubt on the Pataudi family’s claim to one of India’s most historically significant and valuable properties, estimated to be worth ₹15,000 crore.

A Storied Estate with Royal Roots

The estate in question once belonged to Nawab Hamidullah Khan, the last sovereign ruler of the princely state of Bhopal, who held power until the state’s merger with the Indian Union post-Independence. The properties include iconic landmarks like the Noor-Us-Sabah Palace Hotel, Flag Staff House, and thousands of acres of prime land spread across Bhopal and surrounding areas.

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After Hamidullah Khan’s death in 1960, his daughter Sajida Sultan, mother of Mansoor Ali Khan Pataudi and grandmother of Saif Ali Khan was declared the legal heir. Sajida was married to the Nawab of Pataudi, Iftikhar Ali Khan, who also played cricket for both England and India. The couple’s lineage gave rise to a rare intersection of aristocracy, sports, and later, Bollywood; all embodied in Saif Ali Khan.

A Legal Reversal Decades in the Making

The Pataudi family’s claim to the Bhopal estate was considered secure following a trial court ruling nearly 25 years ago, which validated their succession. However, that legal certainty has now been overturned. In a major development, the Madhya Pradesh High Court, presided over by Justice Sanjay Dwivedi, has ruled that the earlier judgment was flawed and ordered the case to be reheard from scratch in a district court. The lower court has been directed to conclude proceedings within one year.

This means that until a new decision is reached, Saif Ali Khan, his mother Sharmila Tagore, and his sisters Soha and Saba Ali Khan are legally barred from claiming ownership of the estate or its income.

The Enemy Property Act: A Key Legal Obstacle

One of the central challenges to the Pataudi family’s ownership lies in the Enemy Property Act, 1968; a law originally enacted in the wake of the India-Pakistan wars. The legislation was designed to prevent citizens who had migrated to enemy nations- particularly Pakistan and China, from claiming ownership of properties left behind in India.

Under this law, any property owned by such individuals was vested in the Custodian of Enemy Property for India, and their Indian relatives were not entitled to inherit these assets. The law was further strengthened in 2017 through amendments that made its provisions retrospective and more absolute.

How the Act Applies to the Bhopal Dispute

The case becomes particularly complex because Abida Sultan, Nawab Hamidullah Khan’s eldest daughter and the rightful heir under the Bhopal Succession to the Throne Act, 1947, migrated to Pakistan in 1950, a full decade before her father’s death. According to the traditional rules of succession, Abida should have inherited the estate. However, her emigration placed her share under the scrutiny of the Enemy Property Act, making it liable for government seizure.

As a result, Sajida Sultan, the second daughter who remained in India, was declared the legal successor. This transfer of inheritance, while supported at the time, has since become controversial, with critics alleging that the decision may have been politically influenced, particularly due to Sajida’s marriage into the influential Pataudi family and the family’s reported ties with then-Prime Minister Jawaharlal Nehru.

Family Rivalries and Legal Tensions Resurface

The High Court’s order has effectively reopened a Pandora’s box of familial tension and legal ambiguity. Several members of the extended royal family, particularly descendants of Abida Sultan have long questioned the legitimacy of Sajida’s succession. The latest judgment gives these claimants a renewed opportunity to challenge the inheritance and possibly claim a share of the enormous estate.

In legal terms, this could also invite a review of the classification of the estate under the Enemy Property framework, especially if it is determined that the properties rightfully belonged to Abida and should therefore have been taken over by the government.

What Lies Ahead for the Pataudi Family?

For Saif Ali Khan and his family, the ruling comes as a significant setback. Although the family has publicly maintained a low profile regarding the inheritance dispute, the legal battle has been ongoing in various forms for years. The fresh trial will determine whether the Pataudis can retain legal ownership or whether the estate or parts of it must be returned to the government or redistributed among other claimants.

Until the district court delivers a verdict, the Pataudi family cannot exercise control or derive benefits from the estate, including running or leasing properties like the Noor-Us-Sabah Palace, which currently operates as a luxury hotel.

A Larger Battle Over Partition-Era Property Rights

This case isn’t just about one royal family; it brings into sharp focus the wider implications of the Enemy Property Act and the enduring legacy of Partition. Thousands of properties across India have been designated as “enemy property,” and many Indian families with cross-border histories continue to struggle for legal clarity on inheritance.

As India grapples with the legal and moral implications of laws shaped by wartime politics, cases like this one involving high-profile personalities underscore the fragile intersection of law, legacy, and identity.

Tags: BhopalEnemy Property Actmadhya pradesh highcourtnoor us sabahPataudi familySaif Ali Khan
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