What is the Hyderabad Fund and how the money will be divided between India and Nizam’s legal heirs
New Delhi, Oct 03: The High Court of England and Wales ruled in India's favour and the two descendants of the late 7th Nizam of Hyderabad, who had sent 1 million pounds to a London in 1948.
Pakistan had claimed that the money on the ground was a payment for supplying arms to the state of Hyderabad during the annexation in 1948. The Nizam had transferred the money to the then Pakistan ambassador in London for safe keeping. The amount continued to remain in the National Westminster Bank in London. The amount today is estimated at 35 million pounds.
The finance minister of Hyderabad had in 1948 transferred 1 million pounds to the Westminster Bank. It was transferred to the bank account of Habib Ibrahim Rahimtoola, who was then Pakistan's High Commissioner in London. The bank is now known as the NatWest Bank.
The Hyderabad fund:
The then Nizam of Hyderabad, Mir Osman Ali Khan said that he had no knowledge about the money transfer. It was done without my approval he had said. The money has since then been frozen and is popularly known as the Hyderabad Fund.
Mir Osman Ali Khan, his grandsons, Muffakham Jahidul, Mukarram Jahidul, members of the Nizam family. India is also a claimant after it entered into a pact with the Nizam's family. Pakistan too is a claimant and hence the case in the UK High Court.
How the dispute began:
The first claimants were Mir Osman Ali Khan and Pakistan. India also claimed the money after the Nizam assigned the claim to the President of India in 1956.
Who gets the money now:
The Hyderabad Fund would be distributed between the Nizam's legal heirs and the Indian Government.