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News18
4 days ago
- Business
- News18
Jacob Diamond: Twice The Size Of The Kohinoor, But This Nizam Used It As A Paperweight
Last Updated: Hyderabad's Nizam once used the Jacob Diamond, worth crores, as a paperweight. Today, this massive gem is secured by the Government of India in Mumbai Mir Mehboob Ali Khan, the sixth Nizam of Hyderabad (born 1866), ascended the throne at just three and ruled until 1911. Known for his fondness for Western culture, luxury cars, clothing, and etiquette, he held one of India's grandest royal courts. Among his prized possessions was the Jacob Diamond, reportedly the world's fifth-largest, twice the size of the famed Kohinoor, the latter now part of the British royal crown. How A Diamond Found Its Place In A Shoe The stunning tale of the Jacob Diamond centres around Mehboob Ali Khan, his Armenian servant Albert Abid, and the mysterious jeweller Alexander Malcolm Jacob. In the 1890s, the diamond sparked widespread scandal, not least because of its unusual discovery, wrapped in a shoe and tucked away for years. Albert Abid, the Nizam's personal servant, oversaw his master's wardrobe, jewellery, and personal effects, managing twelve other attendants. Deceptively, Abid sold the Nizam's used clothes back to him as brand new. Over time, this earned him enough wealth to establish a sprawling shop in Hyderabad known simply as 'Abid', later giving the locality its name. In 1891, he acquired the 184.75‑carat 'Imperial' diamond for Rs 21 lakh, intending to sell it to the Nizam for Rs 50 lakh. A promise of Rs 5 lakh commission to Abid was also made should the deal succeed. Though the Nizam initially agreed in principle to the transaction, the British authorities intervened, forbidding such a lavish purchase. The Nizam's own Prime Minister also opposed it. When Jacob eventually presented the gem, the Nizam declared that he did not like it. Jacob claimed this was a ruse to deceive the British, but the Nizam demanded his money back. Jacob's refusal led to drawn‑out litigation. Courtroom Spectacle: A Scandal Across Empires The dispute escalated into an international sensation. Jacob hired top legal counsel, and the case became the first time an Indian prince was summoned before a British commission for testimony; an extraordinary embarrassment. Though Jacob was ultimately acquitted of fraud, he never reclaimed the full amount. From Shoe To Paperweight To National Treasure Following the trail of scandal, Mehboob Ali Khan wrapped the Jacob Diamond in a rag, kept it in an old shoe and stored it in his wardrobe drawer. His successor, Mir Osman Ali Khan, later found the gem and repurposed it as a mere paperweight, showing scant regard for its size or value. Decades later, the diamond was placed into a trust and eventually acquired by the Government of India in 1995 for over Rs 13 crore. It now resides securely at the Reserve Bank of India in Mumbai, Maharashtra. Fate's Irony: Triumphs And Downfalls Albert Abid's deceptions led him to amass significant wealth, ultimately settling in England with his family. Conversely, Alexander Jacob lost not just money, but reputation, forced to close shop and spend his remaining days as a drifter. These entwined lives and the diamond's curious path make the Jacob Diamond one of the world's most compelling royal gems. Location : Hyderabad, India, India First Published: July 28, 2025, 14:34 IST News india Jacob Diamond: Twice The Size Of The Kohinoor, But This Nizam Used It As A Paperweight Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
17-06-2025
- Business
- India.com
This Indian king had net worth over Rs 20350000000000, he measured diamonds in kilos and gold in tons, but ate in tin plate and smoked used cigarettes, he is…
There are many stories about the royal families of India about their grand palaces, huge wealth, and luxurious lifestyle. But the story of Mir Osman Ali Khan, the 7th Nizam of Hyderabad, is truly one of a kind. He was once the richest man in the world, with more money than most could imagine. But what made him famous was not just his wealth, it was his unbelievable stinginess. He measured diamonds in kilos and Gold in tons Osman Ali Khan had so much treasure that it was said diamonds were measured in kilograms and gold in tons. He had more than 50 Rolls-Royce cars in his collection. His total wealth was estimated to be 236 billion dollars, which today is more than Rs. 20,35,57,67,00,000 (over Rs. 20 lakh crore). One of his diamonds, the Jacob Diamond, weighed 185 carats and was used by the Nizam as a paperweight. That one diamond alone was worth over Rs. 1,350 crore. He had several palaces and often stayed at the grand Falaknuma Palace, located in the heart of Hyderabad. A palace with 220 rooms and a 101-seater dining table Falaknuma Palace was built in 1893 and had 220 rooms, spread across 32 acres. It was known for its beauty and once even featured on the cover of Time magazine. Inside was the world's longest dining table 80 feet long, where 101 guests could eat at once. More generous than governments, yet personally stingy Though very wealthy, the Nizam was also very generous in times of need. During the 1965 war with China, he donated five tons of gold to the Indian government. That's 5,000 kilograms of gold, a donation no one else had ever made. But when it came to spending on himself, he was extremely miserly. According to authors Dominique Lapierre and Larry Collins in their book Freedom at Midnight, the Nizam was known to pick up used cigarette stubs left by guests and smoke them. He wore the same cap for 35 years, didn't get his clothes ironed, and ate his meals in old tin plates, even though he had golden utensils that could feed 200 people at once. He preferred junk cars despite owning luxury vehicles Even though he owned dozens of luxury cars, including Rolls-Royces, he usually rode in an old, broken-down car. If he ever saw a beautiful car in his city, he would ask the owner to gift it to him, and most people didn't dare say no. Still, he preferred to ride in old vehicles instead of his luxury collection. Mir Osman Ali Khan's story is full of contrast, he had unmatched wealth, yet lived like a poor man. He gave generously to the country, but refused to spend on his own comforts.
India.com
25-04-2025
- Business
- India.com
Meet India's first billionaire, Osman Ali, much richer than Mukesh Ambani, Gautam Adani, Narayana Murthy, he was from..., had net worth of Rs...
When we talk about India's richest person, the names that often pop up in mind are Mukesh Ambani, Gautam Adani, Narayana Murthy, and more. However, do you know that their wealth is nothing compared to the man who was the first billionaire of India? Yes, you read that right. Today, we will tell you about India's first richest billionaire who once ruled a princely state in India. If you are wondering who this man was, let us tell you—he was the last Nizam of Hyderabad, whose impressive riches made headlines across the globe. Apart from wealth, this man also had an impressive collection of gems, including the iconic Koh-i-Noor, a fleet of Rolls-Royce cars, royal ties with Queen Elizabeth, and more. The man in discussion is none other than the seventh and last Nizam of Hyderabad, Mir Osman Ali Khan. Who was Mir Osman Ali Khan? Born on April 6, 1886, Mir Osman Ali Khan was the seventh Nizam of Hyderabad and ruled from 1911 until 1948. His reign marked a golden era for Hyderabad, as during this time, the state witnessed massive growth in terms of infrastructure, education, and culture. In the 1940s, Mir Osman Ali Khan's net worth was approximately 236 billion US Dollars (Rs 17.47 lakh crore), if adjusted for inflation. Mir Osman Ali Khan's Sources of Income Mir Osman Ali Khan's massive source of income came from his Golconda diamond mines, one of the world's richest sources of diamonds. His fortune was so immense that it made up 2% of the United States' GDP at the time. Mir Osman Ali Khan also featured on the cover of TIME magazine in 1937 with the title 'The Richest Man in the World.' Not just that, Mir Osman Ali Khan was also the owner of some of the most famous gems that ever existed in the world. His Golconda diamond mines were the ones that introduced the world to the Koh-i-Noor, the Darya-i-Nur, and the massive Jacob Diamond. The Jacob Diamond had a net worth of 120 million US Dollars, equivalent to Rs 1,000 crore. One will not believe that Mir Osman Ali Khan owned as many as 50 Rolls-Royce cars, including the prestigious Silver Ghost Throne Car. This is not it—Mir Osman Ali also introduced Deccan Airways, which was one of the earliest private airlines in British India. The wealth of the Nizam made headlines when the Indian government purchased the Nizam's collection of 173 jewels in 1995 for Rs 218 crore. Among these pieces, it consisted of 2,000 carats of emeralds, 40,000 chows of pearls, bangles, necklaces, cufflinks, and even pendants. Mir Osman Ali Khan was an important figure in history. He made major contributions to the welfare of the people.
