HT This Day: December 22, 1937 -- ₹2 Crores for One Man

“We must confess that we do not quite understand the significance of the engage announced: perhaps it means that the estates, which are being managed partly by the State revenue officials, will hereafter be managed entirely by separate official under the direction and control of his Exalted Highness.”

The “Servant of India” writes: There was recently in announcement in the press about a change in the private estates of his Exalted Highness the Nizam. We must confess that we do not quite understand the significance of the engage announced: perhaps it means that the estates, which are being managed partly by the State revenue officials, will hereafter be managed entirely by separate official under the direction and control of his Exalted Highness.

HT This Day: December 22, 1937 -- ₹2 Crores for One Man

But this puts us in mind of the vast territories which the Nizam is entitled to treat as royal demesnes. They cover an area of 8,110 Sq. Miles, which is about one- tenth of the total area of the state (82,000 Sq. Sq. miles). As many us eighteen talukas in the State form the Nizam’s private estates. The inhabitants of these talukas number 12 ½ lakhs. The income from this territory, according to one estimate, is Rs. 1,35 lakhs, and the announcement in the press puts it at one crore. Even the small figure is nearly one-third of the whole land revenue of the state derived from nine-tenths of the whole area, which is, normally. Rs. 3.22 lakh.

The reason, why one-tenth of the lands yield to the Nizam as much as one-third of what nine- tenths yield to the State, is obvious the Nizam gets not only the state’s share, but also the private landlords share from these eight thousand odd square miles, and al this goes to his privy purse. The official explanation of now is extensive, tract of the country came into the Nizam’s private possession is as follows:

ORIGIN OF ROYAL DEMESNES

In this state, the personal expenses of the Nizam used to be met from cash contributions made by the Diwani Treasury, but as test payments became very irregular, certain territories were detached from the Diwani during the reign of the Nizam Nasar-ud- Daula Bahadur, and taken under his personal management. These lands formed the nucleus of the Sarf-i-Khas Lands (royal demesnes).They have been augmented from time to use by the addition of:

(1) maktas and lands purchased by the Ruler;

(2) maktas, jugirs and other. lands belonging to the relatives of the Ruler. who have died leaving no heirs;

(3) Shorapur ceded to the Nizam by the British Government in 1268 Fasil (1858);

(4) certain taluks in the Osmanabad and Bidar districts as- signed to the Sart-1-Khas in lieu of those situated in the Assigned Districts re-transferred by the British Government in 1270 Fasil (1860).

THE PRIVY PURSE

It is not merely the income from land in this huge block of country that goes to the privy purse of his Exalted Highness, but income from all other sources also, the most important after land being abkari. The Sarf-i-Khas abkari is now managed by the Diwani, but the net income from this fertile source, like the income from land. is made over to the Nizam. As these items do not enter into the State accounts, it is Gre not possible to know accurately how much money they contribute to the maintenance of the Nizam and his family. But there is no reason to suppose that from one- tenth area of the State the Nizam derives less excise revenue than one-tenth of the total excise revenue of the State, which was in 1935 Rs. 1,86 lakhs. Thus from excise the Nizam receives, one may say, a little less than ₹30 lakhs. Excluding other sources of income, we are told that the Nizam’s private income amounts annually to a crore and half of rupees.

CLAIMS IN STATE TREASURY

This he gets as a private land lord, without drawing upon the State treasury in his capacity of the Ruler of the State. But he does make demand upon the State treasury too, to the tune of half a crore of rupees. Thus he has about two crores of rupees to spend on himself and his family. (We exclude here the nazars which he exacts from his subjects, thou; the receipts from this are not a negligible item.) The annual revenue of the State is eight crores. For one man two crores of rupees, and for a crore and a half of men eight crores! Everyone will agree that the dignity of a Ruler must be maintained, but everyone will also agree that the dignity must not be so costly to maintain as to require one-fourth of the resources of the whole state.

Just reflect for an instant on the figures quoted here; the significance will not appear unless one pauses to give a thought to them. His Exalted Highness the Nizam rules over a Stace which is as large in extent as Bengal and which has a population that is numerous of the Central Provinces, but which has a little less than twice the Litter’s revenue but here we are more concerned with his Sarf-i-Khas or private estates. This point will perhaps be best appreciated if we put it as follows. The ruler of a Stat which commands as much area as England and Ireland put together the Nizam holds as his private property a stretch of country which is more than hair the area of Switzerland. As income from this property and as a contribution from the state treasury; he commands at least as much money as the Province of Orissa including the grant it receives from cut Central Government. Can one not put it this way then; the rule of one big State equals the whole population of a small Province?

NOTHING PECULIAR

To be fair to the Nizam, we mating say that this is nothing peculiar to Hyderabad. It in fact prevails to a greater or less degree in all the States. Every Prince has his private lands, and the only connection they have w.tn the State is that they are managed by an official whose salary is often borne by the State exchequer. No one ever knows now much these lands yield to the State; out it always bears a handsome proportion to public revenue. Besides the Prince takes quite a good bit from the State’s finances, for which he never renders an ac- count to his people. Tae Nizam’s privy purse leaps to one’s eyes only because its size is so gigantic.

PRACTICE IN ENGLAND

In this connection it would be instructive to compare the practice of the Royalty of England, to whom they swear fealty, with the practice of our Princes. The British Kings hand over to their Government all the income derived from Crown lands and ask the nation for money for the maintenance o the Royal Household. Parliament considers this request and votes a Civil List, which is only a small proportion of the income from Crown lands which they have given up. The amount is fixed at the beginning of the reign and is not altered later, but Parliament has full control over the amount so fixed. The account of the Civil List is audited by an independent auditor and is published at the close of the reign to serve as a guide for determining the size of the Civil List to be allowed to the next King.

In our country, the Princes possess private lands, the income the resources of the State, but the people t*Sn never know what, the income is. Besides retaining this income, they make a raid upon the State treasury, and there as from which is large compared to no limit to their depredations beyond what their own sweet will may put. Altogether they take about 20 to 25 per cent of what comes into the treasury. No account is ever published and there is of course no question of the accounts being audited by an independent auditor. The contrast is glaring but not surprising. The practices differ from each other no more radically than democracy differs from autocracy.