By IANS
New Delhi : India Friday decided to opt for an out-of-court settlement with Pakistan and the heirs of the Nizam of Hyderabad to resolve a long standing dispute over his funds of over one million pounds ($2 million).
India feels the funds were ‘illegally’ transferred 60 years ago to the NatWest Bank account of then Pakistani High commissioner in London.
The decision not to take the matter to court was taken at a cabinet meeting.
“The cabinet also gave its approval to the negotiating strategy,” a government statement said.
It said that the negotiations would be conducted over a period of 18 months.
The dispute, known as the ‘Hyderabad Funds Case’, began Sep 20, 1948 when an amount of 1,007,940 pounds and nine shillings was transferred from the Nizam of Hyderabad’s funds to that of Habib Ibrahim Rahimtoola, the then high commissioner of Pakistan in London.
The transfer was allegedly made on the instructions of the Nizam’s finance minister without the consent of the Nizam’s government.
India felt that the transfer was irregular since the finance minister had no power to withdraw the amount without the consent of the Hyderabad government. The Nizam subsequently tried to get the funds transferred back to his account, but did not succeed.
A renewed attempt is now being made by India to resolve the long-standing dispute with Pakistan amicably.