Evacuee Property in India and Pakistan Author(s): Joseph B. Schechtman Source: Pacific Affairs, Vol. 24, No. 4 (Dec., 1951), pp. 406-413 Published by: Pacific Affairs, University of British Columbia Stable URL: http://www.jstor.org/stable/2753454 . Accessed: 23/06/2014 04:26 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. . Pacific Affairs, University of British Columbia is collaborating with JSTOR to digitize, preserve and extend access to Pacific Affairs. http://www.jstor.org This content downloaded from 132.74.95.21 on Mon, 23 Jun 2014 04:26:07 AM All use subject to JSTOR Terms and Conditions PacificAflairs patronisingly avuncularWesterners, who, throughtheirverydesireto "preserve"Bali, determined Bali's youngmen to "progress"out of theirmuseum status.For of one thingtherecan be no doubt: Bali has somethingthatis to be foundnowhereelse in SoutheastAsia-a living,vitalculturethatis purely Asian and thathas produceda happypeople.For thisalone,Bali meritsthe most sympathetic understanding and attention. Den Pasar, September I95I JOHN COAST Evacuee Propertyin India and Pakistan IN the wake of the partitionin August I947 of the subcontinent of India into two independentstates,and as a resultof subsequentcommunaldisturbances,a huge two-waymigrationoccurred.'The mostrecentdata supplied to thewriterby theIndian Ministryof Rehabilitation2 put thenumber of Hindu and Sikh refugeesfromWest Pakistanat fivemillion,3while the Pakistan Ministryof Refugees and Rehabilitationplaces the number of Moslems who have migratedfrom India to West Pakistan at 7,900,000.4 Accordingto these figures,nearlythirteenmillionpersonshave been uprooted. This mass of uprootedhumanityabandoned an immenseamount of propertyon both sides of the frontier. Accordingto officialIndian sources, non-Moslemrefugeesvacatedmorethaneightmillionacresof land in West Punjab alone; otherland was relinquishedby non-Moslemsin Sind, the North West FrontierProvince,Bahawalpur, Baluchistanand Kharpur. Moslem refugeesfromEast Punjab and the statesof Patiala, Nabha, Jind, Faridkotand Kapurthalain India abandonedsome fourmillionacres.5In addition,houses,factories, machineryand huge storesof raw materialswere leftbehindbothin India and in Pakistan. 1 See "The Hindu-MoslemExchangeof Population"in JosephB. Schechtman, Population Transfers in Asia,New York,I949, pp. I-50. 2 The present analysisis based on an extensivestudy,the firstdraftof whichwas submitted The writerhas takeninto consideration forcriticism. to the Indian and Pakistangovernments extensiveand valuable commentsprovidedin the springof i95i by the Indian Ministryof Rehabilitation(referredto hereafteras "Indian Comments") and the PakistanMinistryof Refugeesand Rehabilitation("Pakistan Comments"). 3 Indian Comments. 4 PakistanComments. 5 ConcerningEvacuee Property,Ministryof Information and Broadcasting,New Delhi, 1950, p. 6. 406 This content downloaded from 132.74.95.21 on Mon, 23 Jun 2014 04:26:07 AM All use subject to JSTOR Terms and Conditions Evacuee Propertyin India and Pakistan Indian sourcesestimatethe totalvalue of Hindu and Sikh evacueepropertyin Pakistan at some 38.i billion rupees (US$8 billion) and that of Moslem refugeepropertyin India at some 3.8 billionrupees (US$8oo mildiscountthe accuracyof thesefigures: lion).' Pakistansourcesemphatically insiststhatthe propertyclaims the Ministryof Refugeesand Rehabilitation filedby Hindus and Sikhs on whichtheyare in partbased "are fantastically "Pakistanhas been unable in the timeavailableto catalogue exaggerated".7 the extentof propertyleftby the Hindus and Sikhs,and makes no pretension of knowingthe value of propertyabandonedin India by Moslems."8 it is safeto assumethat Withoutweighingthe meritsof thiscontroversy, totalsmanybilinvolvedon bothsides of the frontier the value of property involvedis of vitalconlions of rupees.Settlementof the propertyinterests cern to millionsof personsand representsone of the thorniestproblems bothIndia and Pakistan.During the fouryearssincePartition, confronting the two governmentshave made numerousattempts,mostlyabortive,to reach a just and workableagreementon the matter.Inter-Dominionpacts have been concluded-and broken;and whereunilaterallegislationhas been measures. enacted,it has caused violentobjectionsand, usually,retaliatory whileit was stillregarded At an earlystageof thechaotictwo-wayflight, as a temporaryphenomenon,unconditionaland automaticrestorationof was thecentralprocedureagreedupon. refugee-owners to returning property on SepAn ordinanceenactedby the West Punjab (Pakistan) government tember9, I947, and an "Evacuees Act" issued five days later by the East of the evacuees' Punjab (India) governmentprovidedfor the preservation by speciallyappointedcustodians. property deviationsfromthisprinciplebegan to Very soon,however,far-reaching Beforethe end of SeptemberI947, the occur on both sides of the frontier. issued a new ordinanceempoweringits RehabiliWest Punjab government tation Commissionerto take possessionand "permitthe occupationby [Moslem] refugeesor otherpersons"of lands and buildingsabandonedby Hindu and Sikh evacuees.9Althoughsuch occupationwas limitedto the period of one year, it was obviouslybound to create innumerablefaits accomp/iswhichwerenot apt to be undonelater,and thusreducedthelikerecoveringtheirproperty. lihood of the evacuees'ultimately 6 Ibid. has himselfdescribedtheseclaimsas "not worththe The Indian Ministerof Rehabilitation paperon which [they] were made". The HindustanTimes,New Delhi, Februaryio, 1950. 8 The Evacuee Property Problem-Pakistan'sCase, Ministryof Refugeesand Rehabilitation, Karachi,I950, p. 3. 9 Sections4(2), 8 and ii (A), Ordinanceto Providefor EconomicRehabilitation in West 7 Punjab. See Concerning Refugee Property,cit., pp. I-I2. 407 This content downloaded from 132.74.95.21 on Mon, 23 Jun 2014 04:26:07 AM All use subject to JSTOR Terms and Conditions PacificAffairs Anotherstep in the same directionwas takenin OrdinanceNo. VII of of his propertyby an evacueeDecember i, I947, whichmade the transfer ownerdependenton a seriesof complicatedlegalisticconditionsand thusin effectvirtuallynullifiedhis rightto dispose of it."0 Moreover,even if the conditions,the PakistanCustodian ownercould satisfyall of the restrictive of theproperty to refuseto recognisethetransfer was empowerednonetheless involvedif he regardedit as "prejudicialto the prescribedobjects"of the of Moslem refugeesfromIndia. ordinance-whichincluded rehabilitation to a Hindu or of property SectionI5 of the Ordinancemade therestoration upon his returnto Pakistan.The overwhelmcontingent Sikh evacuee-owner ing majorityof the evacueeswere not in a positionto returnin view of the and the Custodiancould insecureconditionsthenprevailingin the country, to thosewho did return, oftheirproperty stillrefuseto permittherestoration on the ground that such restorationwould be prejudicialto the abovementioned"prescribedobjects"of the Ordinance.Thus, unable to recover, the refugeesfromPakistanhave seen their sell or exchangetheirproperty, invalidated. to it largely right Indian sources assertthat when the matterwas discussedat the first held in New Delhi in DecemInter-DominionConference, secretariat-level suggested to Indian protests, replying Pakistan the representatives, ber I947, Moslem to in action regard similar take should Indian government the that deny emphatically evacuee propertyabandoned in India. Pakistan officials thatsuch a suggestionwas ever made." In any case, the East Punjab governmenton JanuaryI2, 1948, issued an ordinanceamendingthe Act of SeptemberI4, I947, in order "to bring it into line with the practicein Pakistan"."2 FROMtheoutsetthe main pointof discordbetweenthe Indian and Pakistan has concernedthe methodof settlingthe evacuees' property governments has takenthe view thatunderthe existing claims.The Indian government "the only reasonablesolutionseemed to be an exchangeof circumstances evacuee propertyat governmentlevel. . Each Dominion should assume leftbehindin its terriforthe totalvalue of evacueeproperty responsibility in value to the creditor tories,the debtorDominion payingthe difference 10 Ibid., pp. 13-15. 11 The Ministry insiststhat the purposeof the ordinance of Refugeesand Rehabilitation of evacuees.. . . Even had thisspeciallegislato "was in factto safeguardthe property referred and the paymentof conof transfers of registration the formalities tion not been introduced, would have to be observedunderthe Indian Registration authority siderationto the registering of the Custodianmade of PropertyAct, whichhas been in forcesince i908. The intervention (PakistanComments.) no substantialdifference." cit.,pp. i6, i 8. 12 Concerning RefugeeProperty, 408 This content downloaded from 132.74.95.21 on Mon, 23 Jun 2014 04:26:07 AM All use subject to JSTOR Terms and Conditions EvacueeProperty in Indiaand Pakistan Dominion."13Pakistanhas held thatthe evacueesshould"themselveshave withoutanygovernthe fullestfreedomin disposingof theirown properties mentintervention".14 In March I948 an India-PakistanJointOfficialCommittee,appointedto forInter-Dominion considertheproblem,submitted a Draft-Scheme Evacuee PropertyAgreement,which,in regard to agriculturalproperty,fullyendorsedthe Indian view. It recommendedthat"The Dominion in whichthe evacueeagricultural property is situatedshall acquireit on paymentof a fair value" ensuredby a JointValuation Board and determinedon the basis of the averageof pricesprevailingforsimilarland betweenJuneI927 and June I947.15 Since representatives of Pakistanparticipatedin the preparationof this Draft-Scheme, it mightreasonablyhave been expectedthatthe questionwas therebysettled.In fact,however,when thethirdInter-Dominion Conference convenedat Lahore on July22, I948, to considerthe draftsubmittedin March, and the problem of evacuees' agriculturalpropertycame up for discussion,"the main question to be decided" remained,accordingto the officialminutes,"whetherthe settlement should be as betweenthe governmentsof the two Dominions or as betweenindividualevacuees".Pakistan argued that "no definitedecisioncould be taken on this point until more 13 14 Ibid., p. 20. The Evacuee PropertyProblem, cit., p. I 7. It is worthnotingthat the experiencegained frompopulationtransfers in Europe during the precedingthreedecadeswould seem on the whole to supportthe Indian position.Attempts to leave the disposal of abandonedpropertyto individualtransferees or to compensatethem individually on thebasisof evaluationoftheirparticular property invariably failed.The procedure for such evaluationprovedexceedinglylong, complicatedand susceptibleto controversy since it involvedan extremely intricateproblemof appraisaland a difficult adjustmentbetweenthe currenciesand standardsof value of the different countriesconcerned.In the finalanalysis,it was unavoidablyunsatisfactory to all of the interested parties. Even less satisfactory were attemptsto arrangefor directpaymentof compensation to individualproperty ownersby the countryof departure.They were bothinadequateand belated. The transferees themselveswere the main sufferers fromthe inherentshortcomings of this system,whichwerefrequently accentuated bya lack of goodwillon thepartof theauthorities of the countryof departure.See, forexample,JosephB. Schechtman, EuropeanPopulationTransfers,1939-1945, New York, 1946, pp. 470-71. 15 "To facilitate payment,"thereportexplained,"the two Dominionsshall mutuallytransfer theirrespectiveliabilitiestowardstheirevacuee ownersand adjust any difference betweenthe totalof theseliabilitiesin theformof BearerBonds. . . bearingI 1/2% interest freeof income-tax and of not morethan 20 years'maturity. Such Bonds are to be freelytransferable betweenthe two Dominions."A list of evacuee-owners and the rentsdue them on agriculturalproperty was to be exchangedsemi-annually betweenthe two Dominions,and paymentof the difference was to be made by one Dominionto the other.The rentsso collectedwere to be paid by the receivingDominionto the properevacuee-owner. The full textof thisreportappearsin Delhi Agreement Dated 14th September 1948 and Minutes of the Inter-Dominion Conference,Karachi, 10-13 January1949, Karachi,1949, pp. 80-97. 409 This content downloaded from 132.74.95.21 on Mon, 23 Jun 2014 04:26:07 AM All use subject to JSTOR Terms and Conditions PacificAffairs as it was at postponed, A decisionwas accordingly data wereavailable".16 andJune in Karachiin January conferences Inter-Dominion thesubsequent complained ofRehabilitation I949.17As lateas JuneI951 theIndianMinister thefinaladjustment postponing was"foronereasonoranother thatPakistan evacueeproperty".18 of theagricultural as well,verylittle urbanproperty ofimmovable thesettlement Respecting favored theprovision Committee Official headwayhasbeenmade.The Joint by fortheindividualsale and exchangeof suchproperty of fullfacilities pricesand withgovernat reasonable on thefreemarket, evacuee-owners in January theKarachiConference Aftermuchargument, mentassistance.19 alleges,howThe Indiangovernment to thateffect. I949 reachedagreement ever,thatthismethodwas triedforaboutsix monthsin I949 and thatit duringtheentireperiodonlyone sale was effected. provedunsatisfactory: satiswas a mutually movableproperty to abandoned Onlywithrespect Evacueeownerswere reachedand largelyimplemented. agreement factory and to exportor sellit as of suchproperty to applyforrecovery permitted theywished. to achievea IN fact,both Pakistanand India abandonedall attempts propof immovable solution thedisposition regarding satisfactory mutually govto enactlegislation or urban.Theyproceeded agricultural erty, whether and to disposeofit in territories in theirrespective erningevacueeproperty Neithergovernment couldhave of theirrefugeepopulations. the interests these taskofhousingandresettling evenbegunto copewiththestupendous makinguseofthehundreds without immigrants destitute ofutterly millions whichhad beenhastily of fields,housesand otherpremises of thousands No othercoursewas opento them. evacuated. thatlegaltitleto theabandonedproperty recognizing Whileostensibly of India and remainswithits absentindividualowners,thegovernments refugees, on it theincoming thisproperty and settled Pakistanrequisitioned I950 morethan existed.By September forwhomno otheraccommodation Ibid., p. 98. Ibid., p. 72. 18 India News Bulletin, D.C., August15, 1951. Washington, 19Ibid. Accordingto one observerof the implementation in Pakistanof the Karachiagreement,the scheme"has not workedwell". "Prospectivebuyershave been discouragedbecause settledscoresof the premiseswere not available for immediateoccupancy[the government Moslem refugeesthere,who could not be dislodged]and therehas been a wide gap between pricesasked and pricesoffered."RichardSymonds,The Making of Pakistan,London, 1949, p. i62. 16 17 41O This content downloaded from 132.74.95.21 on Mon, 23 Jun 2014 04:26:07 AM All use subject to JSTOR Terms and Conditions Evacuee Propertyin India and Pakistan 5,300,000acresoflandin Indiahad beenallotted to 544,300 HinduandSikh agricultural refugeefamilies.Of 3.5 millionurbanevacueesfromWest Pakistan,abouttwo millionhad been afforded and morethan shelter, In Pakistanby -50,ooohad been assignedshopsabandonedby Moslems.20 the fall of I949, approximately had been fourmillionMoslemrefugees resettled or somehowabsorbed in ruralareas,and anotheri.5 millionhad beenaddedto thepopulation of urbanareas.Of 2,473WestPunjaburban factories abandoned byHindusor Sikhs,I,798had beenallotted to Moslem refugees.2' Legallyspeaking, all oftheseallotments havebeenmadeon a temporary basissincetheproperty rightsarestillvestedin theabsentowners, whoare entitled to sellthemon thefreemarket. Butit is inconceivable thatthemillionsof resettled refugees, ruraland urbanalike,couldeverbe removed in orderto enablereturning evacueesto recoveror sell theirholdingsfreely. Realistically speaking, the problemof abandonedimmovable inproperty evitably boilsdownto thatof thecompensation to be paid by thegovernmentof thecountry of departure to itsevacueesfortheirproperty whichit has appropriated and distributed to itsrefugee inhabitants. No noticeable progress has thusfarbeenmadein thisrespect. Pakistan claimsthatitis notyetpossible tomakea reasonably accurate estimate ofthe valueofevacueeproperty.22 A widelyheldIndianviewis that"Pakistan has so farnevershownanyanxiety to acceptanybasisof calculation and does notwantanysettlement" since"in caseofsettlement on government togov,ernment basisitwillhavetopaya hugeamount toIndiainviewofthegreat disparity in thevalueofevacueeproperty inthetwocountries".23 theendofI947, thetwo-way migration-of Moslemsin onedirection andofHindusandSkihsintheother-waslimited essentially toEastPunjab and WestPakistan.Thereafter, however, in the wake of increasing communaltensions, a stream ofMoslemrefugees begantoflowfromtheIndian provinceof West Bengal (population:20 millionHindusand 8 million UNTIL IndianNews Bulletin,August24 and September 27, 1950. Symonds,op. cit., pp. 139-41. 22 An official Pakistansourcehas explainedthatthe government "could not committhemselves to any liabilities"since "the value of land is in any case doubtfulbecauseof the uncertaintyof futurewater suppliesfor veryconsiderableacreagesof land". Pakistanargues that India is in possessionof the head works of veryextensivecanal systems,and that if India "were to interrupt the flowof waterto thesecanals (as she did temporarily in 1948) vastareas of rich fertileland would be renderedvalueless".Similarly,withregardto immovableurban property, the Pakistangovernment "could not take the responsibility fortakingit over as they would thenhave to findcustomers forit". EvacueeProperty Problem,cit.,pp. 8-9, i9. 23 Mehta Puran Chand, "Evacuee Property", The People,New Delhi, April22, 1951. 20 21 4"I This content downloaded from 132.74.95.21 on Mon, 23 Jun 2014 04:26:07 AM All use subject to JSTOR Terms and Conditions PacificAflairs as I,I71,938.24On was reported Moslems);as ofJune26, i950, theirnumber 8, July 7, i95o, and i95i, some4,784,000 theotherhand,betweenFebruary East Pakistan(populafrom are saidto havemovedto India non-Moslems tion:32 millionMoslemsand io millionHindus).25 The totalvalueof the and otherassetsabandonedin East Pakistanup to June30, realproperty of WestBengalat 870 by theChiefMinister estimated i950, was officially to East Pakistan millionrupees(US$i82,700,000). Moslemswho migrated leftbehindin WestBengal350,000 acresofland,ofwhich250,000 acreshad to Hindurefugees.26 beendistributed bymid-ig5o ofPakistan signedonAprilio, i950, bythePrimeMinisters An agreement to carrywiththem shouldbe permitted thatrefugees and India27provided and cashup to I50 rupees.Ownership all of theirmovablepersonaleffects ofitsowner. bytheevacuation wasnottobe affected property ofimmovable evenifoccupiedbyanbeforetheend of i950, hisproperty, If he returned he was to him.If he chosenotto return, otherperson,was to be restored bysaleorexchange. freetodisposeofhisproperty in a seriesof was completed agreement This ratherhastily-formulated heldin New Delhi and Karachiin Juneand August conferences informal should fromthesaleofmovableproperty thatproceeds I950.28 It was agreed of the or to thegovernment directly, be paid eitherto theevacuee-owner to evacueefordisbursement to whichtheevacueehad departed, country seizedforrehabilitation purposeswas to be reowners.Movableproperty shouldbe paid through compensation storedto itsowner,or,alternatively, country.29 ofthereceiving representative thediplomatic a kindof comThus,it appearsthatwithrespectto movableproperty over whethersettlement promisesolutionwas foundto the controversy basis.The agreement or an individual shouldbe madeon a governmental ofdeparture bythecountry ofpayment procedures foralternative provided of thecountry or to thegovernment to theevacuee-owner -eitherdirectly tohim.In thecaseofseizedmovableproperty fordisbursement ofreception the was to be paidonlythrough compensation whichcouldnotbe restored, of reception. of thecountry representatives diplomatic Karachi,July2i, I 950. Affairs, Pakistan India News Bulletin,July25, I 95 I . HindustanStandard,Calcutta,October6, i950. 27 The full textof the agreement D. C., appearsin The Middle East Journal,Washington, 24 25 26 July 1950, pp. 344-46. 28 India News Bulletin, JulyI2 and August24, I950. 29 Press communique, Karachi,June29, i950. of Refugeesand Rehabilitation, Ministry 412 This content downloaded from 132.74.95.21 on Mon, 23 Jun 2014 04:26:07 AM All use subject to JSTOR Terms and Conditions Evacuee Propertyin India and Pakistan it was agreed to "pledge thatthe With respectto immovableproperty, returningmigrantswill be entitledto the restorationof theirimmovable thosethatare includinghousesrequisitionedby the government, property", and agriculin the possessionof thirdpartieswithoutproperauthorization, turallands, whethervacantor undercultivation.Rent or compensationfor requisitionedpropertywas to be promptlyassessed and paid over to the owner. of imstillplaced upon the restoration The main stresswas, therefore, movablepropertyto returningevacuees,on the fallaciousassumptionthat most of the refugeeswould eventuallyreturnto theirformerplaces of residence. With regardto the mannerof paymentof compensationfor requiprincipleof directpaymentto the the Pakistan-supported sitionedproperty, prevailed. evacuee-owner Immediatelyafterthe conclusionof the New Delhi agreement,both Customs took thenecessarystepsto ensureits implementation. governments and to avoid anykind to relaxexistingrestrictions wereinstructed authorities of harassmentof migrants. the problemof difficulty, To the foreignstudentof the four-year-old settlementof the propertyinterests-andparticularlythose pertainingto immovablepossessions-ofthe millionsof Hindus, Moslemsand Sikhs who have migratedto and fromWest Pakistanappearsto have reachedan almost hopelessstalemate.The morerecentcase involvingmigrantsfromEast and Althoughthe clauses of the April West Bengal seems somewhatdifferent. I950 agreementintendedto eliminatethe causes of mass migrationwere implementedand the two-wayexodus continuesunabated, not successfully of propertyinterestsappear to have been the clauses governingsettlement appliedin a generallyequitablemanner.In a note of September28, I95I, to statedthatofthe234,450 of Pakistan,theIndian government thegovernment Moslem migrantswho had returnedto East Bengal by theend of May I95I, The writerlacks previouslyabandoned.30 i89,240 had regainedland property similar over-alldata concerningPakistan, but the Pakistan Ministerfor Minoritiesreportedin JanuaryI95I thatof the 3i,660 Hindus who had returnedto the localitiesof Maria, Shepur and Dohara, 30,893 had regained their houses and agriculturallands.31 There seems to be less reason for practicerelatingto management,sale or satisfactionwith administrative exchangeof propertybelongingto evacueeswho have chosennot to return. I95I New York,November Jamaica, 30 i6, India News Bulletin,October JOSEPH B. SCHECHTMAN 195I. 31 PakistanAffairs, JanuaryI9, 1951. 413 This content downloaded from 132.74.95.21 on Mon, 23 Jun 2014 04:26:07 AM All use subject to JSTOR Terms and Conditions
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