Century-Old Loan: MP Family Seeks Repayment from British Government

A family in Madhya Pradesh has claimed an extraordinary incident involving the British government from the time of their colonial rule in India. The family has alleged that they owe the British government a loan that was lent in 1917, during the peak years of the First World War. The British administration faced financial pressures and constraints during this period, which is when the government reached out to the local wealthy elites. As per the descendants, one such individual was Seth Jummalal Ruthia, who was a prosperous businessman who has now appeared in the modern-day legal discussions.

The family documents preserved from those days suggest that Seth Jummalal had given out a loan to the British government in 1917, which, back then, was a large sum, equivalent to crores in today’s monetary terms adjusted against gold value and inflation. The loan was issued as a “war loan” to support the administrative expenses in the princely state of Bhopal, under the colonial rule of Britain. Now, this has resurfaced, as the family claims that the amount was never repaid or settled.

For decades, the matter was forgotten among old records, also overshadowed by the prominent historic changes, including Indian independence in 1947. It was only recently that the family discovered these records and found out about this pending loan, after the death of a family elder and the discovery of century-old certificates. At the core of the incident is what the family plans to use this information and paperwork in the coming future. Vivek Ruthia, the 63-year-old grandson of Seth Jummalal, has now announced that he is planning to send a legal notice to the British government, seeking a repayment of the original amount with the interests that have accrued over more than a century.

Vivek argues that the loan of Rs 35,000 given out in 1917 would be a huge sum today. If calculated as per the gold prices in the year 1917 and the current rates today, this value could rise to crores of rupees. This statement has captured attention for the legal and diplomatic reasons just as much as it has for the historical curiosity it triggers. The family intends to invoke the elements of international law, suggesting the commitments should be honoured carefully if the incident is properly documented, even if they are from the colonial age.

Legal experts state that such claims are unusual and quite complex to tackle. Sovereign debt raises concerns, questions and limitations, especially if it originates from the colonial era. Some people argued that since the British government is no longer colonising India, the claim can be contested or can be legally unenforceable.

However, the Ruthia family is stern that their claim is dependent on rightful documentation and the duty of repayment from the borrowers.