Hyderabad: Family members of Mir Osman Ali Khan, the seventh Nizam, on Tuesday, urged the Central government to resolve the pending income and wealth tax issues pertaining to the Nizam Jewellery Trust. The issues have not settled for twenty-six years now, the family said.
Najaf Ali Khan, the grandson of the seventh Nizam, said that the Nizam had created a trust for the benefit of his family members in 1950. “Trustees also included along with others Prince Muffakham Jah and a Government nominated trustee from the Finance Ministry at the level of Joint Secretary. Nizam Jewellery Trust Deed clearly stated the responsibilities of Trustees that they are answerable to their Receipts, Neglects, Defaults, and Own Acts,” the statement by Najaf Ali Khan reads.
When the Central government agreed to purchase the items of jewellery for an amount of Rs 206 crores in the month of January 1995, he said, the income tax department raised a total demand of Rs. 30.50 crores towards arrears of income wealth tax.
“When things come to the knowledge of the beneficiaries of the trust in 2010, the senior-most trustee Prince Mufakkham Jah resigned to cover up his mistakes and kept this issue hanging in fire and not taking up the responsibility of resolving the pending tax issue for which the family members have been facing a very hard time,” Najaf Ali added.
Speaking to siasat.com, Khan said: “The main reason for the family suffering for so many years is none other than Prince Mufakkham Jah along with the trustees of the Nizam Jewellery Trust. Had they, along with the income tax department, acted responsibly, this matter would have been resolved and the family wouldn’t have to face distress for so many years.”
Writing to the finance ministry, he requested to look for a one-time solution and settlement of the issue.