Nizam funds: Notice to Centre

Great-granddaughter alleges £35 mn withdrawn

The Telangana High Court on Monday issued notices to Union government, Nizam Trust and two grandsons of Nizam, Prince Mukarram Jah, and his younger brother Muffakham Jah, on a petition filed by Princess Shafiya Sakina, great-granddaughter of Nizam VII, challenging exclusion of female legal heirs from benefitting out of the 35 million pound funds of Hyderabad’s Nizam Osman Ali Khan held in London’s NatWest Bank.

Justice Abhinand Kumar Shavili directed all of them to respond on the petition filed by Shafiya in four weeks, pending admission of the plaint.

Shafiya Sakina had filed a petition before the High Court alleging that the Union of India has ignored female legal heirs and taken away their property rights by entering into a Confidential Settlement with the titular Eighth Nizam, Prince Mukarram Jah, and his younger brother Muffakham Jah.

The petitioner urged the court to declare such settlement or agreement “illegal and arbitrary”. She further sought a directive to include all beneficiaries of Nizam Trusts in getting the benefit of £35 million. In this regard, the greatgranddaughter of Nizam VII brought to the notice of the HC that already £34.5 million has been withdrawn by Prince Mukarram Jah, Muffakham Jah and, along with Centre, distributed as per their confidential agreement.

The fund in question relates to £1 million transferred to National Westminster Bank by then finance minister of Hyderabad State, Nawab Moin Nawaz Jung, from Hyderabad to London in September 1948.

This was when the then Government of India undertook Operation Polo to ensure that the Hyderabad State joined India. Subsequently, the transfer was invalidated by the Nizam saying it was “unauthorised”. The National Westminster Bank then froze the account until the rightful claim is established. In the interim, the fund grew to pounds 35 million or `37 crore.

Subsequently, in October 2019, the High Court of England and Wales ruled the amount to be in favour of Government of India,

Prince Mukarram Jah and Prince Muffakham Jah. However, the ratio of respective shares has not been made public.

Shafiya Sakina then laid claim to the fund, saying the judgment violated law as Nizam had set up 28 trusts to look after various assets and named his kin as trustees of these trusts. She contended that all these trustees are legal heirs and the fund should be distributed to all.

She pointed out that no court in India has declared Prince Mukarram Jah and Prince Muffakham Jah as sole heirs of the Nizam Fund.