NEW DELHI: The curtain has finally been drawn on the dispute surrounding the precious jewellery belonging to the descendants of the Nizam of Hyderabad with the retired judge of the Calcutta High Court Mr A.N. Sen on Saturday fixing their total value at Rs225 crore This brings to an end the 30-year-old battle between t Government and the trustees of the Nizam Jewellery Trust (NIT) who came to own the antique jewellery belonging to “His Exalted Highness of Hyderabad”.

Justice Sen was appointed the ‘umpire’ by the two arbitrators Justice Khalid a retired judge of the Supreme Court a nominee of the NIT and Justice H. C. Goel a retired High Court judge represent the Government when both of them could not agree on certain technical issues.

Justice Sen heard the case for six months in the Calcutta High Court premises with the list of 173 items of jewellery and the value of each of them being submitted by both the arbitrators.

The jewellery is currently lying in the state custody of the Hong Kong & Shanghai Bank Bombay.

The arbitrators were initially appointed by mutual agreement between the trustees and the Government of India in 1989 with the prior approval of the Supreme Court.

The dispute arose in 1977-78 when the Nizam’s family wanted to sell or export part of the jewellery out of the country to meet their tax obligations and other financial difficulties.

The then Janata Party Government headed by Mr Morarji Desai gave the permission to sell but insisted that the Government fix the pace. A 3-member panel headed by the then Union Finance Secretary was set up to fix the value at which the jewellery could either be sold or exported. But before the panel could complete its work the Morarji Government fell making way for Mr Charan Singh.

In September 1979 she Nizam trust was about to auction 37 items of jewellery which the Archeological Survey of India had declared had no antique value. The highly cease auction was to take place in the Supreme Court with the Christie’s of London and the well-known oil sheik Galadhari among the galaxy of bidders landing up in Delhi. The Sheik had even deposited Rs 20 crore with the court.

But the auction was thwarted in the nick of time with the Cabinet Committee on Political Affairs headed by then Prime Minister Mr Charan Singh declaring that the Nizam’s jewellery was national treasure which could not be taken out of the country. The Government passed an administrative order that none of the items of jewellery could be sold or exported.

The Government assessed the value of the jewellery at Rs 65 crore based on the wealth tax returns filed by the Nizam’s family. The trust however maintained that the real value was around Rs 1000 crore and the Government should pay that much of money if it wanted to buy them. The Nizam’s family went in appeal to the High Court in Hyderabad and the case was later reverted to the Supreme Court. The Nizam Jewellery Trust and the Government mutually agreed in 1989 to appoint arbitrators to arrive at the value of the jewellery. Two arbitrators were appointed on behalf of both the parties but they differed in their assessment.

Once Justice Sen was appointee umpire the NJT brought in the assessors from the Christie’s who inspected the jewellery and in their evidence before the court put the value of the jewellery at $ 150 million (Around Rs 325 crore in the then prevailing exchange rate) Dadachandji & Co well known solicitors. Mr Nani Palkhivala legal luminary and Mr Gaurishankar an income tax expert was among those who appeared on behalf of the trust.

The Nizam’s collection includes fabulous emerald-studded jewellery gold items which originally came from Siberia after the October 1917 Russian revolution jewellery which formed part of the Czar’s legacy ‘Jacob diamond of 185.74 carats rare necklaces rings brooches and turban ornaments.

Nizam Osman Ali Khan the seventh and the last of the Nizams of Hyderabad was reputed to be one of the richest men in the world. He created an elaborate system of trusts for the benefit of numerous members of his family. The endless quarrels among his heirs series of income tax and legal disputes led to a situation where much of the wealth were frittered away by unscrupulous or plainly incompetent advisers.

The Justice Sen order has not only fixed the total value of the jewellery but each of the 173 items has been independently valued.

The Government has the option of buying the entire jewellery or some selected items. Mr Mufakkam Jah the London-based grandson of the last Nizam who is one of the “trustees will be main beneficiary of the deal if it is finally gone through.

Article extracted from this publication >> August 30, 1991