Pakistan owes India $ 3 billion in 1948, time to pay it back?
  • 5 years ago
For days now India has been seething with anger over the horrific Pulwama terror attack that left 40 CRPF jawans dead. The question on every Indian's mind is simply this Just how do we make Pakistan pay? The Govt of India has initiated some measures such as withdrawing the Most Favoured Nation status to Pakistan raising import duty on all Pakistani products to 200% banning Pakistani artists in India. But the question really is how do we hit Pakistan where it hurts. Even as the defence forces evaluate a range of options to impose a heavy cost on our hostile neighbour. Here at NewsX we're looking at a series of measures that can perhaps serve the purpose of building pressure on Pakistan. So today we’re asking isn’t it time Pakistan returned to India with interest the money that was paid to that country in the name of the Nizam of Hyderabad in 1948? A payment which the Nizam himself challenged. Here are the facts of the case Known as the “Hyderabad Funds Case”. The matter relates to the transfer of over 1 million pounds to a London bank account in the name of the High Commissioner in the UK for the then newly formed state of Pakistan Habib Ibrahim Rahimtoola at the Westminster Bank in 1948. The money was transferred by an agent who appeared to be acting on behalf of the ruler of one of the largest and richest of the Indian princely states. The 7th Nizam of Hyderabad Following the Partition in 1947 the numerous princely states within the subcontinent were permitted by the UK to elect to join either of the two new dominions or to remain independent. The Nizam chose to remain independent. However on September 18, 1948 Hyderabad was annexed to India. On September 20, 1948 the money was transferred to Rahimtoola by the agent, On September 27, 1948 the Nizam sought to reverse the transfer of the money claiming that it had been made without his authority. As the successor state to the Nizam’s State of Hyderabad India has all along sought to claim the money maintaining that it was the state’s money and not the Nizam’s private wealth. So what kind of money are we talking about? It was over 1 million pounds back in 1948. Add to it interest for 7 decades and the cost of inflation And it comes to about 2 billion pounds or 3 billions US dollars as of today That would be 50% of Pakistan’s total forex reserves Remember this is a country that’s on the verge of bankruptcy. So the question is simple Isn’t it time we got Pakistan to pay us back the money which is rightfully ours?
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