Saif Ali Khan Faces Major Setback as Madhya Pradesh High Court Declares Rs 15,000 Crore Pataudi Family Properties ‘Enemy Property’

Bhopal, July 6, 2025 – In a significant legal blow to Bollywood actor Saif Ali Khan and his family, the Madhya Pradesh High Court has declared ancestral properties worth approximately Rs 15,000 crore, including Saif’s childhood home, Flag Staff House, as ‘enemy property’ under the Enemy Property Act, 1968. The court’s ruling overturns a 25-year-old trial court verdict that had previously recognized Saif’s great-grandmother, Sajida Sultan, as the rightful heir to the estate. The decision not only jeopardizes the government to take over these assets but also orders a retrial in the long-standing Bhopal royal family inheritance dispute, marking a dramatic twist in one of India’s most high-profile property battles.

What is ‘Enemy Property’?

The term ‘enemy property’ refers to assets left behind by individuals who migrated to Pakistan or China after the partition of India in 1947 or during subsequent conflicts, such as the Indo-Pakistan wars. Under the Enemy Property Act, 1968, the Government of India has the authority to seize and manage properties belonging to such individuals, deemed ‘enemy nationals.’ These assets are placed under the control of the Custodian of Enemy Property for India, which can use them for national purposes or dispose of them as per government directives.

The Act was enacted to address properties left by those who took citizenship of Pakistan or China, countries considered adversaries during specific periods. In the case of the Pataudi family, the classification stems from the migration of Nawab Hamidullah Khan’s eldest daughter, Abida Sultan, to Pakistan in 1950. This connection has led to the government’s claim over the Bhopal estate, despite Sajida Sultan, who remained in India and married Iftikhar Ali Khan Pataudi, being recognized as the legal heir in 1962.

The Pataudi Family’s Ancestral Properties

The properties in question, valued at an estimated Rs 15,000 crore, are part of the vast estate of the erstwhile royal family of Bhopal. These include several iconic and historically significant assets, such as:

• Flag Staff House: Located in Bhopal’s Kohefiza area, this is the childhood home of Saif Ali Khan and a prominent property linked to the Pataudi family. Valued at approximately Rs 1,500 crore, Flag Staff House holds sentimental and cultural significance for the family.
• Noor-Us-Sabah Palace: A luxurious palace in Bhopal, known for its architectural grandeur.
• Ahmedabad Palace: Another key asset in the Bhopal estate.
• Dar-Us-Salam and Bungalow of Habibi: Additional properties in Bhopal included in the ruling.
• Kohefiza Property and Chiklod Forest: Land holdings in Bhopal and Raisen districts, contributing to the estate’s massive valuation.

These properties trace their origins to Nawab Hamidullah Khan, the last ruling Nawab of Bhopal, whose family legacy has been at the center of this legal battle. After the princely state of Bhopal merged with the Indian Union in 1949, the Nawab’s personal properties were recognized as his absolute ownership under the Bhopal Succession to the Throne Act, 1947. Following Hamidullah’s death in 1960, his daughter Sajida Sultan inherited the estate, which later passed to her son, Mansoor Ali Khan Pataudi, and subsequently to Saif Ali Khan, his mother Sharmila Tagore, and his sisters Soha and Saba Ali Khan.

The Legal Battle and High Court’s Ruling

The dispute began in 2014 when the Custodian of Enemy Property Department issued a notice declaring the Pataudi family’s Bhopal properties as ‘enemy property’ due to Abida Sultan’s migration to Pakistan. Saif Ali Khan challenged this classification in 2015, securing a temporary stay from the Madhya Pradesh High Court. However, on December 13, 2024, the court lifted the stay, giving the Pataudi family 30 days to appeal to the Appellate Tribunal. No appeal was filed within this period, paving the way for the government to proceed with the takeover.

In a parallel development, on June 30, 2025, Justice Sanjay Dwivedi of the Madhya Pradesh High Court set aside a Bhopal district court’s verdict from February 14, 2000, which had upheld the Pataudi family as the rightful heirs based on Sajida Sultan’s succession. The court found that the 2000 ruling relied on an outdated precedent from the Allahabad High Court, which was overturned by the Supreme Court in 2020. The Supreme Court clarified that the private properties of erstwhile rulers must be treated under personal succession laws, not merely as political inheritance.

The High Court has now ordered a retrial of the case, directing the trial court to conclude proceedings within one year. Other heirs of Nawab Hamidullah Khan have challenged the 1962 Government of India certificate recognizing Sajida Sultan as the sole successor, arguing that the estate should be divided among all heirs per Muslim Personal Law. This retrial could reshape the inheritance structure of the Bhopal royal family’s estate.

What is Flag Staff House?

Flag Staff House is a historic residence in Bhopal’s Kohefiza area, where Saif Ali Khan spent much of his childhood. Valued at approximately Rs 1,500 crore, it is one of the key properties in the Pataudi family’s Bhopal estate. The house is not only a symbol of the family’s royal heritage but also a significant cultural landmark in Bhopal. Its inclusion in the ‘enemy property’ classification has added an emotional dimension to the legal setback for Saif and his family, as it represents a personal connection to their legacy.

Impact on the Pataudi Family

The Madhya Pradesh High Court’s ruling is a double blow for Saif Ali Khan and his family. Not only does it jeopardize their claim to properties worth Rs 15,000 crore, but it also reopens the inheritance dispute, potentially allowing other heirs to claim a share under Muslim Personal Law. The loss of Flag Staff House, in particular, is a significant emotional and cultural setback, given its personal significance to Saif.

The decision has sparked widespread debate, with social media posts reflecting mixed sentiments. Some express sympathy for the Pataudi family, with comments like “Saif losing Pataudi legacy is heartbreaking,” while others support the court’s ruling, citing the Enemy Property Act’s intent to address post-partition property disputes. Legal experts suggest that Saif’s team may consider appealing to the Supreme Court to challenge the ‘enemy property’ classification.

Broader Implications

This case highlights the complexities of the Enemy Property Act and its impact on families with historical ties to pre-partition India. With approximately 2.1 million enemy properties nationwide, as per the Ministry of Home Affairs, the Pataudi family’s case underscores ongoing debates about the fairness and application of the Act. The Bhopal district administration is expected to initiate the takeover process soon, potentially altering the historic legacy of one of India’s prominent royal families.

As the retrial looms, the Pataudi family faces an uncertain future regarding their ancestral estate. For Saif Ali Khan, this legal battle is not just about property but also about preserving a legacy deeply intertwined with Bhopal’s royal history.