QUESTION = What was a payment made to the royal
families of erstwhile princely states as part of
their agreements to first integrate with India in 1947, and later to merge
their states in 1949 whereby they lost all ruling rights ?
ANSWER = The Privy Purse.
In India, the Privy Purse was
a payment made to the royal families of erstwhile princely states as part of
their agreements to first integrate with India in 1947, and later to merge
their states in 1949 whereby they lost all ruling rights. The Privy Purse was
continued to the royal families until the 26th Amendment in 1971, by
which all their privileges and allowances from the Central Government would
cease to exist, was implemented after a two-year legal battle. In some individual cases however privy
purses were continued for life for individuals who had held ruling powers
before 1947.
It was
again proposed in 1971, and was successfully passed as the 26th Amendment to the Constitution of India in 1971. Then Prime Minister Indira Gandhi argued the case for abolition based on equal rights for
all citizens and the need to reduce the government's revenue deficit.
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