# White Paper on Indian States (1950)/Part 7

PART VII
Settlement of Rulers' Private Properties
156. The Instruments of Merger and the Covenants establishing the various Unions of States, are in the nature of over-all settlements with the Rulers who have executed them. While they provide for the integration of States and for the transfer of power from the Rulers, they also guarantee to the Rulers privy purse, succession to gaddi, rights and privileges and full ownership, use and enjoyment of all private properties belonging to them, as distinct from State properties. The position about the privy purses guaranteed or assured to the Rulers is set out in details in Part XI. The provisions of the Constitution bearing on the rights, privileges and dignities of Rulers and their succession to their respective gaddis are also explained in that Part. So far as their Private properties are concerned, the Rulers were required to furnish by a specified date inventories of immovable property, securities and cash balances claimed by them as private property. The settlement of any dispute arising in respect of the properties claimed by a Ruler was to be by reference to an arbitrator appointed by the Government of India.
157. In the past the Rulers made no distinction between private and State property; they could freely use for personal purposes any property owned by their respective States. With the integration of States it became necessary to define and demarcate clearly the private property of the Ruler. The settlement was a difficult and delicate task calling for detailed and patient examination of each case. As conditions and customs differed from State to State, there were no precedents to guide and no clear principles to follow. Each case, therefore, had to be decided on its merits. The Government of India were anxious that the new order in States should be ushered in in an atmosphere free from any controversies or bitterness arising from any unhappy legacy of the past. A rigid and legalistic approach would have detracted from the spirit of good-will and accommodation in which the political complexion of the States had been so radically altered. By and large the inventories were settled by discussion between the representatives of the Ministry of States, the Rulers concerned and the representatives of the Governments of the Province or the Union as the case may be. The procedure generally adopted was that after the inventories had been received and scrutinised by the Provincial or the Union Government concerned and after the accounts ​of the States taken over had been examined, the inventories were discussed across the table and settled in a spirit of give and take. In all discussions with the Rulers of the States forming Unions, the Rajpramukhs were associated; the private properties of Rajpramukhs were settled by the Government of India in informal consultation with the Premiers of the Unions. This method made it possible to settle these properties on an equitable basis within a remarkably short period and without recourse even in a single case to arbitration. The settlements thus made are final as between the States and the Rulers concerned.
158. The settlements made in regard to private properties of the Rulers were arrived at as a compromise between the claims of the Rulers and the counter-claims of the Governments, and with due regard to the paramount need of safeguarding public interests. In the nature of things it was not possible to lay down or follow any strict or uniform standards; nevertheless certain broad principles were observed. These are indicated below:—
(i) Palaces and other Residential Buildings.—These were allocated on the basis of previous use and the needs of the Ruler and the administration. The Ruler's palace with houses used for his private guests and personal staff were treated as his private property. The Rulers were also allowed to retain one or two houses outside the State, for example, at a hill station or a sea-side resort.
(ii) Farms and Gardens.—Rulers who were interested in farming or horticulture have been allowed to retain reasonable areas of land already in their possession. These lands, will be held subject to the ordinary revenue laws and to the payment of assessment.
(iii) The Rulers have also in a number of cases been allowed to retain grazing areas; the land so held is liable to assessment. Generally, no forest areas have been given to Rulers, though limited rights of grazing and obtaining fuel have been recognised in some cases. Shooting rights of the Rulers have been recognised in defined areas subject to the laws in force and authorised working plans.
(iv) As the privy purse is intended to cover all the expenses of the Ruler and his family including expenses on account of his personal staff, maintenance of residences, marriages and other ceremonies, Rulers have not been allowed to add to this income directly or indirectly. New jagirs or grants of villages made to the consorts or children of the Rulers have not been recognised as private property. Likewise all other rights enjoyed ​and claimed by Rulers in respect of land such as customary right to enjoy the fruit of trees on common lands, superior proprietary rights over agricultural areas, proprietorship of service jagirs, etc., have been extinguished. The Rulers have surrendered their jagirs and where their proprietary rights over lands has been recognised, it has been done mainly on the ground that many of them have the resources and time to undertake modern and mechanical farming and to bring new areas under cultivation. As already stated, the position of the Rulers in respect of these areas will be the same as that of a private land-holder and they will be subject to revenue laws and assessment.
(v) Investments and Cash Balances.—The opening balances which, according to the books of the States, belonged to the States, have been handed over to the successor Governments. Only such investments and cash to which the States could lay no claim have been recognised as private property of the Ruler.
(vi) Ancestral Jewellery and Regalia.—In a large number of cases, ancestral jewellery has been treated as heirloom to be preserved for the Ruling family. In the case of the States having valuable regalia, such articles are to remain in the custody of the Ruler for use on ceremonial occasions and they will be subject to periodical inspection by the Governments concerned.
(vii) Civil List Reserve Fund.—The Rulers had created Civil List Reserve Funds according to the advice given by the Chamber of Princes. The fund was intended to relieve the State of the expenditure in connection with marriages etc. in the Ruler's family. The amount standing to the credit of these funds has therefore been allowed to be retained by the Rulers. Generally, additions to the fund made after the date of integration have not been treated as private property.
(viii) Temples and Religious Funds.—Excepting the temples situated within the palaces, temples and properties attached to them have been constituted into Trusts. The right of the public to worship at these temples has been maintained.
(ix) The Rulers will preserve for the nation objects of historical importance like rare manuscripts, paintings, arms etc. Even though treated as private property these objects will be preserved in Museums inside the States concerned. Where any of them are kept in private custody, scholars, students and others interested will have access to them under proper regulations.
​(x) A number of Rulers have houses in New Delhi. Most of these were constructed on plots of land allotted on special terms and conditions when New Delhi was built. The Rulers have claimed these houses but the question whether these houses should be treated as the Rulers' private property or State property is still under consideration as also the question of their acquisition for use by the Government of India.
159. Some of the special arrangements made for management of important properties in States may be mentioned:
(i) Indore Ahalyabai's Charities.—The Khasgi properties of His Highness the Maharaja of Indore and the income from Khasgi which had been hitherto utilised for Maharai Ahalyabai's Charities all over India and for the maintenance of allowances to the senior Maharani of Indore, were made over to the Madhya Bharat Government and in return the Madhya Bharat Government undertook to pay annually from the revenues of the properties a sum of Rs. 291,952 for charities. The amount has been funded and placed under a permanent Trust consisting of the Ruler of Indore, two nominees of the Ruler, one nominee of the Government of India and two nominees of the Madhya Bharat Government. This Trust will also administer the charities of Her Highness Maharani Ahalyabai Holkar.
(ii) His Highness the Nawab of Rampur has agreed to set up a Trust in respect of his famous library which contains over 12,000 rare manuscripts and several thousands of Moghul miniature paintings.
(iii) His Highness the Maharaja Gaekwar has agreed to create a Trust with a corpus of Rs. 20 millions, the income from which will be available for works of public utility in the rural areas of the erstwhile Baroda State and for the advancement of education. The new Baroda University will be amongst the institutions which will benefit from these Trusts.
(iv) Gangajali Fund.—This fund, which has a corpus of Rs. 16,237,000 was created by the Scindias as a special reserve fund for use during grave emergency such as famine. His Highness the Maharaja of Gwalior has made this fund available for public benefit. Subject to any instructions or directions from the Government of India, the authority to control and administer the fund is vested in the Rajpramukh of Madhya Bharat.
160. As a result of the settlement of private properties, over 500 villages in addition to thousands of acres of scattered areas of jagir lands claimed in the inventories have been given up by the Rulers.
​161. When the administration of the States was taken over, the new Governments inherited cash balances and investments of the value of nearly Rs. 700 millions. During the settlement of the private properties, the Rulers gave up their claims to approximately another Rs. 46 millions. Other properties given up include palaces, buildings, stables, garages, shops, jewellery, fleets of motor-cars, aeroplanes, etc.