New Delhi, Apr 11 (UNI) The Union Cabinet today gave its approval to pursue an out-of-court settlement with Pakistan and the heirs of the Nizam on the matter of the funds lying with Nat West Bank.
The Cabinet also gave its approval to the negotiating strategy.
This would release funds lying locked up with the British Bank for the last 60 years and also resolution of one long standing item on the India-Pakistan agenda, Minister of Science and Technology Kapil Sibal told reporters here after the Cabinet meeting.
The negotiations would be conducted over a period of 18 months.
On September 20, 1948, an amount of over one million sterling pounds, maintained in the name of the Nizam of Hyderabad's Government in National Westminister Bank, London, was transferred into an account in the name of then High Commissioner for Pakistan in London Habib Ibrahim Rahimtoola.
The transfer was on the instructions of the Nizam's Finance Minister but without the consent of the Nizam's Government.
The instructions were irregular in as much as the Finance Minister of the Nizam's Government had no power to withdraw this money without the express sanction of the Nizam or the State Government.
UNI RT SG HT1730