A significant ruling was recently made by the High Court of England and Wales that has impinged on historical and international relations, particularly those involving India, Pakistan, and the United Kingdom. In a legal battle that dates back seven decades, the High Court ruled in favour of India and the relatives of Osman Ali Khan, the last Nizam of Hyderabad granting them access to a £35 million fund previously deposited in a London bank account. The court rejected the claim made by Pakistan in relation to these funds.
The Background of the Case
The case is linked to a financial transaction carried out on September 16, 1948. The foreign minister and envoy of the Nizam of Hyderabad in London transferred an amount currently worth approximately £35 million (approximately ₹306 crore) to the account of the High Commissioner of Pakistan. This transfer was processed by the bank on September 20, 1948. Just prior to this transaction, on September 17, 1948, the armed forces of Hyderabad had surrendered to the Indian Army following a military operation known as “Operation Polo.”
Shortly after this surrender, Osman Ali Khan, the last Nizam of the princely state of Hyderabad, demanded the aforementioned fund be returned to his account. However, Pakistan also claimed rights to the money, resulting in an ensuing legal battle. The case was formally initiated by Pakistan in 2013 against the National Westminster Bank, insisting that the funds be transferred to them.
Hyderabad’s Integration into India
Hyderabad was one of India’s most substantial native/princely states, ruled by the Nizams who accepted the paramountcy of the British sovereign. The Nizam of Hyderabad, along with Nawab of Junagadh and the ruler of Kashmir, did not accede to India before the date of independence, i.e., August 15, 1947.
Table: Key Events in Hyderabad’s history
| Date | Event |
|---|---|
| 15 August 1947 | India gains Independence; Nizam of Hyderabad does not accede to India |
| 13-18 September 1948 | Indian Army takes complete control of Hyderabad under Operation Polo |
| 20 September 1948 | Bank processes transfer of funds from Nizam’s envoy to High Commissioner of Pakistan |
| 2013 | Legal case for the fund initiated by Pakistan |
The Nizam of Hyderabad and the Aftermath of Independence
The Nizam of Hyderabad was persuaded by Pakistan and local Muslim natives to remain an independent power and improve his armed forces to resist integration with India. This resistance resulted in internal chaos within Hyderabad, prompting Indian Army intervention under Operation Polo on September 13, 1948. The operation led to significant communal violence, with various estimates of death tolls.
Despite the violence and vehement protests from Pakistan, the Nizam was allowed to retain his position as the state’s head after Hyderabad’s integration into India, similar to other princes who acceded to India. Furthermore, the Nizam disowned any complaints made to the United Nations and, despite international criticism, the UN Security Council did not continue dealing with the issue, resulting in Hyderabad’s absorption into India.
