By Gaggan Sabherwal
BBC South Asia Diaspora Reporter
17 September 2019
Finance Minister Nawab Moin Nawaz Jung, who was the finance minister in the court of Mir Osman Ali Khan Siddiqui, the seventh Nizam of Hyderabad, had sent 35 million pounds to the bank account of Pakistan High Commissioner in Britain at that time, has increased 35 times today.
The 1 million pounds (about 89 crore rupees) transferred to the London back account of Habib Ibrahim Rahimatullah, Pakistan's High Commissioner to Britain, has now become 350 million pounds (about 3.1 billion rupees) and deposited in his NatWest bank account in his name.
For a long time there was tension between the Nizam and the successors of Pakistan regarding these money. The case is still pending in the Royal Court of Justice in London.
Justice Marcus Smith, who is hearing the case, has heard the arguments of both the parties and is going to decide on the matter in October this year.
Their decision will decide who will go to this amount of 3.5 million pounds.
The BBC tried to know the story behind this ongoing legal battle between the seventh Nizam and Pakistan and the transfer of money.
The story of Hyderabad's accession to India
India became independent on 15 August 1947, but many states, including Hyderabad, the capital of the Telangana state of southern India, did not taste independence on this day.
Hyderabad remained his princely state under Nizam rule till 17 September 1948. After this, this princely state was merged with India through a military operation named 'Operation Polo'.
This story of the transfer of 1 million pounds is about the merger of Hyderabad with India.
At that time, Hyderabad was the princely state of Nawab Mir Osman Ali Khan Siddiqui, the seventh descendant of the Asaf Jah dynasty. He was considered the richest person in the world at that time.
He was the seventh and last Nizam of the princely state of Hyderabad before the merger of Hyderabad into India through 'Operation Polo'.
Paul Hewitt of the lawmakers Withers Worldwide Law Firm representing Yuvraj Mukarram Jah-eighth, the grandson of the seventh Nizam, says, "During Operation Polo, the finance minister of the Nizam of Hyderabad, with the intention of securing the money, spent around £ 1 million at the time. Transferred to Pakistan's high commissioner's London bank account. "
This money, transferred in 1948, later became the reason for the legal war between the successors of the seventh Nizam and Pakistan.
Battle to get money back
Paul Hewitt explains, "As soon as the seventh Nizam of Hyderabad came to know about the transfer of money, he asked Pakistan to return his money soon. But Rahimtullah refused to return the money and said that it is now Pakistan's Property is created. "
After this, in 1954, a legal war started between the seventh Nizam and Pakistan. The Nizam moved the UK High Court to get his money back and started the legal process.
The case in the High Court went in favor of Pakistan and after this the Nizam had to go to the Courts of Appeal where the Nizam won.
But after that, Pakistan went ahead and knocked on the door of the House of Lords, UK's highest court. Pakistan argued that the Nizams could not sue Pakistan because Pakistan is a sovereign nation.
The House of Lords gave its decision in favor of Pakistan and justified its argument that the Nizams cannot prosecute Pakistan. But with this the House of Lords also frozen this disputed amount of 1 million pounds.
Since then, the money transferred to the account of Pakistan High Commissioner Habib Ibrahim Rahimtulla is with NatWest Bank. According to the bank, these money can now be given only to the rightful heir after the court's decision.
But with the 1 million pounds deposited in 1948, the interest amount in the last sixty years has now become 350 million pounds.
In the last few years, an attempt was also made to find a solution to this dispute through dialogue but no result was found.
Government of India is also a party in the case
The seventh Nizam of Hyderabad died in 1967. But this legal battle to get the money back continued even after this and his successors took it forward.
In 2013, Paul Hewitt joined this legal battle when the Pakistani High Commissioner started the legal process against the bank in the hope of withdrawing money for Pakistan.
After this, it was obliged for the bank to talk to all concerned parties claiming this money in this matter and both the princely states of Nizam princely state including India were also involved.
Paul Hewitt says that both the youths have recently discussed this issue with the Indian government, which had once claimed these money.
Till now, no document has emerged regarding the discussion or agreement between the Nizam's successors and the Indian government.
The BBC tried to contact the Nizam's successors but they refused to talk.
Pakistan's arguments
On one hand, the Nizam's family says that during Operation Polo, this money was sent to the account of the Pakistani High Commissioner for safekeeping.
On the other hand, Pakistan argues that during the merger of Hyderabad with India in 1948, Pakistan had helped the former Nizam a lot. This money was given as a gift to the people of Pakistan by the former Nizam in return for the same help and for this reason Pakistan has the right.
Paul Hewitt says, "In 2016, Pakistan argued that between 1947 and 48, arms were brought from Pakistan to Hyderabad. These were worth 10 million pounds."
"Pakistan has so far made two arguments in this matter - first they said that it was the gift of the Nizam to Pakistan and but later said that this money was transferred in lieu of purchase of weapons. From the Nizam's side we have It was argued that no evidence has been presented to prove both the arguments of Pakistan. They want to discuss that the Pakistani diplomat involved in this May include why this argument should be trusted but they have been offered no evidence to prove that it had paid the money to buy weapons. It is very inconsistent. "
The poet Counsel Khawar Qureshi, who is representing the case from Pakistan, says that he does not want to discuss the matter right now.
The BBC has a copy of the arguments submitted from Pakistan. According to this document, "the seventh Nizam of Hyderabad was helped by Pakistan, in return for which money was transferred to Rahmatullah's bank account" so that this money could be kept away from India's hands. "
"Pakistan had supplied arms for the seventh Nizam from Pakistan to Hyderabad so that Hyderabad could protect itself from the Indian invasion."
According to this document, from 20 September 1948, this amount is in Rahimtulla's London-based bank account.
I questioned Paul Hewitt whether there was no written agreement between the two sides before this transfer of money. Hewitt states that, "The seventh Nizam has given an affidavit that he had no knowledge of this transfer."
"This evidence has not been challenged so far. This indicates that at that time his finance minister felt that he was securing some money for the future of the Nizam and on the basis of this agreement, Rahimtullah gave his Accepted to keep money in the account. "
Paul Hewitt says, "When the seventh Nizam realized that he might not be able to get this money back in his lifetime, he created a trust. He added this money to his trust and created two trustees." Announced that after him his successor would be his two grandchildren - the eighth Nizam and his younger brother. That is why both of them are members of this family whose rights Is on these money. "
They say that this is a very complicated and historical matter, to which they are directly connected.
BBC Telugu Service correspondent Dipti Bathini spoke to the head of the Deccan Heritage Society, Mohammed Safiullah, regarding the matter.
Mohammad Safiullah says that between 13 September and 17 September in the year 1948, the Indian government had launched Operation Polo, which was completely a military operation against the princely state of Hyderabad. Nearly 40 thousand soldiers of the Indian Army were involved in this campaign. On 17 September, Hyderabad declared a unilateral ceasefire and subsequently agreed to join the Indian Union.
Safiullah believes that this entire amount of 350 million pounds should be divided equally among the three parties of the matter - the Government of India, the Nizam's successor and Pakistan in three parts.
He says, "Perhaps this solution to the issue is acceptable to everyone".
(Please watch my TV report on this story from 4'30).
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