The Legal Battle Over Nizam’s Funds: India vs Pakistan
The legal dispute between India and Pakistan over the Nizam’s funds in a UK bank has been an ongoing issue. This historic conflict stems from events dating back to the early 20th century and has gaining more attention with the involvement of the Nizams, their descendants, and British banks.
Background of the Conflict
The conflict began in 1947 when the Partition of British India into India and Pakistan took place. At that time, the state of Hyderabad was a separate princely state considering its own accession status. The last Nizam of Hyderabad, with the support of the British, decided to maintain his state's independence, fearing the annexation by either India or Pakistan due to the concept of partition. However, post-Second World War, the government of India (Operation Polo) initiated actions to annex Hyderabad forcibly, leading to conflict and subsequent negotiations.
Deposition and Dispute
In the face of this conflict, the finance minister of Hyderabad, Moeen Ali, made a decision to transfer a significant sum of one million pounds to a Pakistani high commissioner in the UK, seeking financial support for the state. This decision was made out of fear that Indian forces could seize Hyderabadi assets, and only Pakistan could be trusted to hold funds safely. This initial transaction, dated 1948, seemingly transferred the funds to Pakistan. However, when Hyderabad eventually annexed to India, the seventh Nizam, Osman Ali Khan, disputed this transaction, claiming it was unauthorized and lacked his knowledge.
Legal Arbitrations and Continued Disputes
The funds deposited in what later became the National Westminster Bank, now known as NatWest, continued to accrue interest over the years. The deposit initially stood at one million pounds, and by now has grown to a substantial figure of around 35 million pounds. Documents from the time reveal the initial transfer and the subsequent actions leading to the dispute.
Efforts to resolve the dispute were made through legal means. In 2013, the House of Lords suggested that a resolution should be made through arbitration, but this did not lead to a final settlement. The matter resurfaced when one of the Nizam's descendants, M Alliuddin Khan, claimed a share of the funds under Sharia law as a legal heir. Additionally, in 2015, a UK court dismissed India's claim that Pakistan had no right to the funds.
Current Status and Claimants
Currently, the descendants of the Nizam, including Prince Mukarram Jah (the eighth Nizam) and Muffakham Jah, are actively supporting the Indian government in attempting to reclaim the funds. They argue that the Nizam had a change of heart and assigned the money to the state of India through an assignment signed in 1965, two years before his death in 1967. They contend that the funds belong to India due to this assignment and the closer alignment of the Nizam's decision with Indian accession.
On the other side, Pakistan maintains that it should retain the funds as the Nizam had entrusted the money to a Pakistani official due to his trust in Pakistan's support during the conflict. Pakistan demands that the NatWest bank return the funds. This continues to be an unresolved and ongoing legal battle, with potential for a final settlement in the future.
Conclusion
The legal battle over the Nizam's funds has deep historical roots, involving complex political, legal, and financial issues. Both India and Pakistan maintain their claims, with the descendants of the Nizam playing a key role in the current legal proceedings. As this case continues, it is expected to bring further insight into the broader debate surrounding partition and its aftermath in the region.
Keywords: Nizam's funds, Hyderabad dispute, Indus dispute