Nizam funds: Kin ignored in UK award of Rs 325 crore to challenge it over ‘invalid’ papers

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HYDERABAD: The legal battle over the Nizam money or Hyderabad fund seems to be far from over even after a London court disposed of the seven-decade-old case involving 35 million pound (Rs 325 crore) last year.
Nizam VII Mir Osman Ali Khan’s grandson Najaf Ali Khan has decided to seek legal remedy claiming the certificate of succession issued to the titular Nizam VIII Mukarram Jah in 1967 had become invalid after the abolition of the privy purse in 1971.
He said the UK court, which dealt with the case, had banked on the certificate of succession. He said the money ruled in favour of the Nizam’s heirs should be distributed as per the provisions of the Muslim personal law as the succession certificate is now “non est” in law.
Najaf Ali told TOI that he would file a case against those who provided the “invalid” certificate to the administrator of Nizam Estate for forgery, misrepresentation, cheating, fraud, and misappropriation of fund. He said he would also invoke the law governing false evidence, Foreign Exchange Management Act (FEMA), sedition and causing heavy loss to the exchequer.
The Hyderabad fund case relates to money sent by the finance minister of Hyderabad State prior to Police Action in September 1948 to the account of the Pakistan high commissioner in London.
India, Pakistan and Nizam’s heirs claimed the money and, after a long-drawn battle, the UK court ruled in favour of India and Nizam’s two grandsons Mukarram Jah and Muffakham Jah. A small portion of the money was allocated to the administrator of the Nizam Estate, who was also a party to the case.
Najaf Ali said the certificate of recognition was used in the UK court, which “is clear violation of the Constitution of India pertaining to the distribution of Nizam’s fund lying in NatWest Bank in UK”. He alleged that other legal heirs of the Nizam have deprived the remaining family of Nizam VII their legitimate right, causing them a huge financial loss”.
“The certificate of recognition was quashed by Andhra Pradesh high court in the case of Ahmedunnisa Vs Union of India (January 29, 1968). In a similar matter, the certificate of recognition of rulership pertaining to Nawab of Rampur was quashed by the Delhi High Court (December 18, 1969). Despite the rulings of the Andhra Pradesh and Delhi high courts and abolition of the privy purse, the invalid certificate was used,” Najaf Ali Khan alleged.
He said he came to know that the certificate was used in the proceeding pertaining to distribution of the Nizam fund case only in July 2020. The certificate was provided to the administrator of the Estate of Nizam VII.
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