Empire’s Forgotten Loan? Sehore Family Seeks Repayment of 1917 British Debt

Bhopal/Sehore:
More than a century after the height of the British Empire, a family in Madhya Pradesh’s Sehore has revived a stunning financial claim — alleging that the colonial government borrowed Rs 35,000 in 1917 and never returned it.

Now, 109 years later, the descendants of Seth Jummalal Ruthia say they are preparing to send a legal notice to the British government to recover what they describe as a “historic and unpaid sovereign debt.”

The 1917 ‘War Loan’ Claim

According to the family, the loan was extended in 1917 during World War I, when imperial administration across India faced mounting financial pressure.

Seth Jummalal Ruthia — then among the wealthiest businessmen in Sehore and the Bhopal princely state — reportedly provided Rs 35,000 to the British authorities to help streamline administrative operations.

The amount was enormous by the standards of the time — capable of buying vast estates and wielding significant political influence.

The family claims the sum was categorized as a “war loan,” but was never repaid.

Documents Found After a Century

Vivek Ruthia, grandson of Seth Jummalal Ruthia, says the family recently discovered documentary proof — including certificates, correspondence, and references in a family will — after his father’s death.

“In 1917, my grandfather loaned Rs 35,000 to the British government. That amount has not been repaid to this day,” Vivek Ruthia stated.

Seth Jummalal Ruthia passed away in 1937, nearly two decades after the alleged loan was issued. The matter, the family says, faded into obscurity over time — until now.

How Much Would Rs 35,000 Be Worth Today?

While Rs 35,000 may sound modest in 2026 terms, economists point out that the figure was massive in 1917.

Vivek Ruthia argues that if calculated against gold prices from 1917 to present-day rates, the value could run into several crores. If adjusted for inflation or asset value growth, the sum could potentially multiply significantly.

In short, what once financed wartime governance could now represent a substantial fortune.

Can the UK Be Legally Forced to Pay?

The family reportedly plans to invoke international legal principles, arguing that sovereign nations are obligated to honour historical debts.

Legal experts say such cases are rare and legally complex — especially when they involve colonial-era transactions between private individuals and imperial governments before Indian Independence in 1947.

Questions likely to arise include:

  • Was the loan formally documented as a sovereign obligation?
  • Did post-Independence agreements between India and the UK settle such liabilities?
  • Does limitation law apply after 100+ years?

Even if symbolic, the case could open debate on colonial financial accountability.

The Legacy of the Ruthia Family

Before Independence, the Ruthia family was among the most influential and affluent in Sehore and the Bhopal region. They reportedly owned extensive land and property holdings.

It is believed that nearly 20–30% of Sehore’s settlements once stood on land owned by the family. Today, they continue to own properties in Sehore, Indore, and Bhopal, with interests in agriculture, hospitality, and real estate.

Like many legacy landholding families, they are also involved in long-running property and tenancy disputes dating back decades.

A Symbolic Battle or a Legal Earthquake?

Whether the claim results in compensation or remains symbolic, it raises a powerful historical question:

Can colonial-era debts still be reclaimed in modern courts?

As the Ruthia family prepares its legal move, this century-old “war loan” may soon become part of a global legal and diplomatic conversation.

One forgotten document from 1917 could reopen debates about empire, accountability, and unfinished financial history.
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