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Heir to the former nizam (prime minister) of Hyderabad Mukarram Jah and other members of the erstwhile ruling family have reached a settlement on the sharing of the proceeds from the sale of the nizam's famed jewellery collection, ending a seven-year long dispute.
The Centre had acquired the 173-piece collection for Rs 2.18 billion and handed over the money to the Nizam's Jewellery Trust (NJT) in 1995.
As grandson of the seventh nizam late Mir Osman Ali Khan and as head of the Asaf Jahi dynasty, Jah was entitled to the lion's share of the sale proceeds.
According to legal and family circles, the dispute arose over the sharing of about Rs 600 million among approximately 2,000 beneficiaries.
As per the NJT's deed, the proceeds from the sale of jewellery were to be apportioned among the beneficiaries according to their specified shares.
The entire fund was divided into 16 parts, with four parts each earmarked for the seventh nizam's two sons (from his first wife), one part each for his brother and a daughter, and the rest for his children from other wives.
On the death of the original beneficiaries, their share would be inherited by their direct descendants.
The share of those who die childless would go to the eldest living male member of the family, in this case Mukarram Jah, the deed specifies.
While the seventh nizam's sons, a daughter and his brother died long before the sale of the jewellery was effected in 1995, 17 other children were alive when the Indian government handed over the cheque of Rs 2.18 billion in lieu of the fabulous collection.
Of this, the Income Tax department deducted Rs 290 million while the trust has spent approximately Rs 110 million on a nearly 25-year-long legal battle with the Indian government before the sale was finalised.
Of the remaining Rs 1.8 billion, the NJT disbursed approximately Rs 1.2 billion. The remaining got embroiled in a dispute when some family members took the matter to court.
Mukarram Jah's lawyers led by Delhi-based senior counsel Vijay Shankar Das held intensive negotiations with the litigants who comprised five distinct groups.
In the seven years of legal wrangling, the amount almost doubled to Rs 1.13 billion.
They reached a separate understanding with each group, but kept the terms of the financial settlement with each group secret.
However, sources said that Mukarram Jah's younger brother Muffakham Jah received Rs 140 million, their mother princess Durru Shehver was gifted Rs 50 million, the heirs of the seventh nizam's second son Moazzam Jah (from his first wife) were given Rs 30 million, and the seven other surviving sons and daughters of the seventh nizam and their legal heirs were given Rs 350 million.
Rs 20 million was assigned to approximately 1,930 other members of the erstwhile royal family.
Mukarram Jah will receive the remaining Rs 540 million.
The Andhra Pradesh high court has been informed of the settlement as it is hearing some cases in this regard.
Mukarram Jah had been making efforts for some time now to sort out outstanding disputes with other members of the former ruling family in an amicable way.
Designated as the 'eighth' titular nizam following the death of the erstwhile ruler in 1967, Mukarram Jah recently named eldest son Ezmat Jah as his 'rightful heir'.
Ezmat is Mukarram Jah's son from his first wife, Princess Esra, whom he divorced in the 1970s.
Esra is presently helping her former husband as advisor and attorney.
She visits Hyderabad frequently to oversee the nizam's properties and, at present, is supervising the renovation of the Chow Mohalla palace complex, which is likely to cost approximately Rs 100 million (Rs 10 crore).
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