British took Rs 35,000 in 1917, claim descendants; Now MP family wants it back with interest, plans legal notice

A family in Madhya Pradesh’s Sehore has claimed that the British government failed to repay a loan of Rs 35,000 taken in 1917 and is now preparing to send a legal notice to the United Kingdom to recover what they describe as a historic sovereign debt.

The claim centres around Seth Jummalal Ruthia, a prominent businessman from Sehore during the British era, who is said to have extended the loan more than a century ago.

Alleged 1917 War Loan

As reported by NDTV, the loan was reportedly issued in 1917, during the First World War, when British administrative resources were under strain. The amount of Rs 35,000 was considered substantial at the time.


Vivek Ruthia, grandson of Seth Jummalal, told NDTV that documentary evidence of the transaction was recently discovered among old family records following his father’s death.

“In 1917, my grandfather, the late Seth Jumma Lal Ruthia, loaned Rs 35,000 to the British government. That amount has not been repaid to this day,” he was quoted as saying by NDTV.

According to him, the documents include certificates and correspondence suggesting that the loan was classified as a war loan and was intended to support administrative management in the Bhopal princely state under British rule.

Family Claims Debt Was Never Settled

Seth Jummalal Ruthia passed away in 1937, nearly two decades after the alleged loan was extended. As cited by NDTV, the family claims that the matter remained unresolved and gradually faded from attention over the years.

Now, more than 100 years later, Vivek Ruthia says he is preparing to issue a legal notice to the British government, seeking repayment of what he describes as an “unpaid sovereign debt”.

He further argued, as reported by NDTV, that the present-day value of Rs 35,000 from 1917 would amount to a significantly larger sum if calculated on the basis of historical gold prices.

“If you calculate the amount based on the gold price of 1917 and compare it to today’s rate, the figure becomes significantly higher,” he reportedly said.

Legal and Historical Questions

According to NDTV, the family is considering invoking principles of international law, maintaining that sovereign states are theoretically bound to honour historical financial obligations.

Legal experts cited by the broadcaster noted that such claims are rare and complex. However, cases involving documented pre-Independence transactions between colonial authorities and private individuals could raise unusual legal questions.

The Ruthia Family’s Legacy

Before Independence, the Ruthia family was regarded as one of the most influential and affluent families in the Sehore and Bhopal princely states, NDTV reported. They were known for their landholdings and financial influence.

Even today, it is said that a considerable portion of Sehore’s settlements stands on land once owned by the family. The Ruthias continue to own property in Sehore, Indore and Bhopal, and are involved in agriculture, hospitality and real estate.

However, like many old landed families, they are also dealing with longstanding property disputes and legacy rental arrangements dating back several decades.

The reported move to pursue repayment has drawn attention to a little-known episode from the colonial era and may revive debate over historical financial claims linked to British rule in India.


Inputs from agencies