No, The Nizam Of Hyderabad Did Not Donate 5,000 Kg Gold During 1965 India-Pakistan War
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While folklore has long credited Mir Osman Ali Khan, the last Nizam of Hyderabad, with donating 5,000 kg of gold to the Indian Army, historical records suggest otherwise
When a country is at war, common people often wonder how they can best support their troops? The simplest way is to contribute to the national defence fund and similar schemes. Amid the latest conflict with Pakistan too, acts of grassroots patriotism are making headlines.
In Uttar Pradesh's Mirzapur district, two village leaders – Satish Tiwari of Akodhi and Chandrabhushan Singh of Paderi – have donated Rs 98,000 to the Army Fund. Their gesture was handed over in the form of a demand draft to District Magistrate Priyanka Niranjan. 'This is our way of standing with the soldiers," they said, echoing sentiments seen in past wartime efforts.
Such civilian-led contributions harken back to the days of the 1965 India-Pakistan War. One of the most storied instances from that era involves Mir Osman Ali Khan, the last Nizam of Hyderabad – then regarded as one of the richest men in the world. While folklore has long credited him with donating 5,000 kg of gold to the Indian Army, historical records suggest otherwise. In reality, the Nizam contributed 425 kg of gold, not as a donation, but as an investment in the National Defence Gold Scheme initiated by the government.
This investment was made following a personal appeal by then prime minister Lal Bahadur Shastri, who met the Nizam during a fundraising tour of Hyderabad. According to a report dated December 11, 1965, in an English-language newspaper, Shastri acknowledged the Nizam's contribution during a public address, noting that the gold – valued at Rs 50 lakh at the time – was deposited in the form of coins, whose authenticity and purity were later verified.
'We do not want to melt these gold coins, but want to send them to some other country so that we can get a higher price for it," Shastri had reportedly remarked. His government was also buoyed by a 125 kg gold donation from the Tirumala Tirupati Devasthanam (TTD) and a Rs 8 lakh donation from a prominent Telugu film actor.
The most common way to contribute to the armed forces' efforts now is the National Defence Fund. The NDF of India was established in 1962 to support the welfare of members of the Indian armed forces, paramilitary forces, and their dependents. It is used primarily to assist the families of soldiers who have lost their lives or suffered serious injuries while serving the nation. The fund is managed by an executive committee headed by the Prime Minister, with the Defence, Finance, and Home Ministers as members.
The NDF relies entirely on voluntary donations from individuals, organisations, and corporates. It is not allocated any budgetary funds by the government, making public contributions vital. The donations are exempt from income tax under Section 80G of the Income Tax Act, encouraging people to contribute generously.
First Published:
May 12, 2025, 14:32 IST
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