UK Court Awards £35 Million to the Heirs of Hyderabad’s Last Nizam After 70-Year Dispute
Mir Osman Ali Khan, the seventh Nizam of Hyderabad
AFTER REMAINING FROZEN IN A LONDON BANK FOR OVER 70 YEARS, THE TREASURE HAS FINALLY BEEN AWARDED TO HIS DESCENDANTS
Hyderabad, once a flourishing princely state between 1724 and 1956, stood as a cultural and political powerhouse in India. Its capital, the city of Hyderabad, ranked as the fourth-largest in the country during that era. The state was eventually absorbed into the Indian Union, divided between Andhra Pradesh, Karnataka, and Maharashtra. Its final sovereign, Mir Osman Ali Khan, was renowned worldwide as one of the wealthiest men of the 20th century.
In 1948, amid the turbulence of partition, the Nizam discreetly deposited £1 million into a London bank account to safeguard a portion of his vast fortune. With decades of accumulated interest, this dormant deposit has now swelled to £35 million (€39 million). At the same time, as Indian forces prepared to annex Hyderabad, the ruler safeguarded his treasures, even stockpiling trucks filled with jewels in anticipation of a possible flight from his kingdom.
By 1957, rival claims over the funds emerged: the Nizam’s heirs, alongside the governments of India and Pakistan, each insisted on ownership. For more than seventy years, the money remained locked in legal limbo. Only now has a British court ruled with finality: the fortune belongs to his grandchildren.
The legendary Diamond JACOB with 185kt
Historical accounts portray Mir Osman Ali Khan, who ascended the throne in 1911, as a ruler whose eccentricities matched the staggering scale of his wealth. On one occasion, he reportedly remained unfazed when rats devoured banknotes worth £3 million stored in chests in his basement.
In his private chambers, he kept dozens of emeralds in paper bags, while the legendary Jacob Diamond—as large as an ostrich egg and weighing 185 carats—served as a paperweight on his desk. This extraordinary gem, discovered tucked in a sock belonging to his father, was valued at an astounding £50 million.
The Nizam’s personal security was formidable: over 3,000 North African bodyguards protected him, while palace staff performed highly specialized tasks, including 40 employees whose sole duty was to clean chandeliers. He had four legal wives and more than 80 concubines, fathering over a hundred children.
Queen Elizabeth II in 2007 wearing the diamond necklace gifted to her by the Nizam
When Queen Elizabeth II married Prince Philip in 1947, he gifted her a diamond necklace—a piece she famously wore in Annie Leibovitz’s 2007 portrait and later seen on Catherine, Duchess of Cambridge, at a 2014 gala at London’s National Gallery.
TWO HEIRS
The eighth Nizam, who holds the title but never ruled, emigrated to Australia in his youth, where he became a shepherd. Now 84 years old, he, along with his younger brother, Prince Muffakham, 80, are set to inherit the last remaining portion of their grandfather’s immense fortune.
The seventh Nizam passed away at age 80 in 1967, mourned deeply by his subjects. During his reign, he was beloved for his use of wealth to fund roads, railways, hospitals, and universities. His funeral procession remains one of the largest ever witnessed in India, a testament to his enduring impact on the nation.
Catherine, Duchess of Cambridge wearing the diamond necklace in 2014