Life and Legacy of Osman Ali Khan: The Last Nizam of Hyderabad & The Richest Indian in History

Mir Osman Ali Khan, Asaf Jah VII (1886-1967), reigned as the final Nizam of Hyderabad, the largest princely state in British India. Crowned in 1911 at the young age of 25, his rule extended until 1948 when Hyderabad was annexed by India.

He was not only the last Nizam but also considered one of history’s wealthiest individuals. Estimates suggest his fortune amounted to a staggering 2% of the US GDP at the time. This immense wealth stemmed largely from the Golconda mines, which held a monopoly on the world’s diamond supply during his reign. His immense wealth was even recognized by Time magazine, which featured him on their cover in 1937.

Osman Ali Khan held immense power and wealth. He was known for his vast treasury and was considered one of the richest men in the world. But it wasn’t just his wealth that made him significant. He worked on social reforms, education, and infrastructure. His rule has left an indelible mark on Hyderabad, shaping it into what it is today.

Osman Ali Khan’s Early Life and Education

• Mir Osman Ali Khan was born on either 5 or 6 April 1886 at Purani Haveli.
• He was the second son of Mahbub Ali Khan, Asaf Jah VI, and Amat-uz-Zahra Begum.
• Mir Osman Ali Khan received his education privately and became fluent in Urdu, Persian, Arabic, and English.
• Under Nawab Muhammad Ali Beg, he received training in court ethics and military matters.
• In 1898, on the recommendation of Lord Elgin, the Viceroy of India, Sir Brian Egerton was appointed as Mir Osman Ali Khan’s English tutor for two years.
• During this time, he lived separately from the main palace to focus on his studies and gentlemanly development under British guidance.
• Against the tradition of the zenana, Mir Osman Ali Khan was sent to Mayo College for further education after consultation with the principal nobles of the Paigah family.

Osman Ali Khan’s Reign

Leadership During the Nizam’s Rule

• Mir Mahboob Ali Khan, the VI Nizam, passed away on 29 August 1911. On the same day, Mir Osman Ali Khan was declared Nizam VII under the guidance of Nawab Shahab Jung, the minister of Police and Public Works.
• The coronation ceremony officially took place on 18 September 1911 at the Chowmahalla Palace, attended by dignitaries including Prime Minister Maharaja Kishen Pershad, Colonel Alexander Pinhey, the British Resident of Hyderabad, and nobles from the Paigah family and other principalities under Nizam’s domain.
• The wealth of the Nizams was largely derived from the famous Golconda mines, which were a major source of diamonds in the 18th century, making Hyderabad the sole global supplier during that era.
• Mir Osman Ali Khan ascended as the Nizam of Hyderabad in 1911, presiding over the largest princely state in colonial India, covering an area equivalent to the present-day United Kingdom.
• He held prestigious titles such as “His Exalted Highness” and “Faithful Ally of the British Crown,” owing to his substantial financial contributions to the British Empire during World War I, amounting to nearly £25 million in today’s currency.

Contributions and Impact on Hyderabad’s Development

• In 1918, he issued a decree establishing Osmania University with Urdu as the language of instruction, which was praised by Nobel laureate Rabindranath Tagore for promoting accessible education.
• Under his reign, the Executive Council of Hyderabad was formed in 1919, and Begumpet Airport was established in 1930, later becoming the base for Deccan Airways, one of British India’s earliest airlines.
• In his final years as Nizam, Mir Osman Ali Khan sought international alliances, including a matrimonial connection with the deposed Ottoman caliph Abdulmejid II, and faced challenges such as the Telangana Rebellion and the annexation of Hyderabad by India in 1948, after which he served as Rajpramukh until 1956.

List of Organizations founded by Mir Osman Ali Khan

Name	Year
Osmania University	1918
Hyderabad High Court	1956
Jubilee Hall	1913
Kachiguda Railway Station	1916
Asafiya Library (State Central Library, Hyderabad)	1891
Town Hall now known as the Assembly Hall	1913
Hyderabad Museum now known as the State Museum	1930
Osmania General Hospital	1919
Nizamia Hospital	1926
Hyderabad House	–
State Bank of Hyderabad	1981
The Agriculture Research Centre now known as Marathwada Agriculture University	1918
Begumpet Airport	1930s

Osman Ali Khan’s Contribution to the Society

Educational Initiatives:

• Approximately 11% of his budget was allocated to education, focusing on establishing schools, colleges, and a Department for Translation.
• He made primary education compulsory and free for the poor.
• Osmania University was founded in 1918 through a royal decree.

Construction of Major Public Buildings:

• Under his reign, numerous significant public buildings and institutions were constructed in Hyderabad city.
• These included the Hyderabad High Court, Jubilee Hall, Nizamia Observatory, Moazzam Jahi Market, Kachiguda Railway Station, Asafiya Library (State Central Library, Hyderabad), Town Hall (now Assembly Hall), Hyderabad Museum (now State Museum), and hospitals like Osmania General Hospital and Nizamia Hospital.
• The Hyderabad House in Delhi, now used for diplomatic meetings by the Government of India, was also built during this period.

Establishment of Hyderabad State Bank:

• In 1941, the Nizam founded the Hyderabad State Bank, later renamed the State Bank of Hyderabad.
• It became the state’s central bank until its merger with the State Bank of India in 2017, established under the Hyderabad State Bank Act on 8 August 1941.
• Flood Prevention:
• Following the Great Musi Flood of 1908, which claimed an estimated 50,000 lives, the Nizam initiated flood prevention measures.
• He oversaw the construction of two reservoirs: Osman Sagar, named after himself, and Himayat Sagar, named after his son Azam Jah.

Agricultural Reforms:

• The Nizam established an agricultural research center in the Marathwada region of Hyderabad State.
• The Main Experimental Farm was set up in 1918 in Parbhani to research crops such as sorghum, cotton, and fruits.
• Post-independence, this facility was expanded and renamed Marathwada Agriculture University on 18 May 1972.

Contribution to Indian Aviation:

• The Nizam played a pivotal role in Indian aviation by establishing Begumpet Airport in the 1930s.
• This airport facilitated domestic and international flights operated by Deccan Airways Limited, the first airline in British India, alongside the formation of the Hyderabad Aero Club.

Osman Ali Khan: Family History

The family tree of Osman Ali Khan is extensive with descendants spread across various parts of the world. Notable members of his family were:

• Father: Mahbub Ali Khan, Asaf Jah VI (Sixth Nizam of Hyderabad)
• Mother: Amat Uz Zahra Begum
• Wife: Azam Unnisa Begum ( Dulhan Pasha Begum)
• Sons:
  • Azam Jah (First son)
    • Sons: Mukarram Jah (Eighth Nizam), Muffakham Jah
  • Moazzam Jah (Second son)
• Mir Osman Ali Khan Grandson
  • Mukarram Jah: He was a grandson of Mir Osman Ali Khan’s eldest son, Azam Jah. Mukarram Jah passed away in 2017.
  • Muffakham Jah: Another grandson, Muffakham Jah, is the son of Nizam’s other son, Moazzam Jah.

Current Nizam Family

• Mir Osman Ali Khan, the last Nizam of Hyderabad, left a legacy not only of immense wealth but also of significant contributions to society.
• His descendants continue to uphold the rich history of the Asaf Jahi dynasty.
• Mir Osman Ali Khan had 18 sons and 16 daughters.
• Prince Mukarram Jah, one of his sons, became the eighth Nizam of Hyderabad in 1967 after Mir Osman Ali Khan’s death and currently resides in Turkey.
• The title of Nizam of Hyderabad is now held by Azmet Jah, Mir Osman Ali Khan’s great-grandson.
• Many descendants of the Nizam clan, spanning mostly the 5th and 6th generations, have settled in Hyderabad, other parts of India, and abroad.
• Despite their prestigious lineage, the family’s current situation contrasts starkly with the opulence of their ancestors.
• Approximately 120 descendants of the last Nizam of Hyderabad are currently engaged in a legal battle to claim their rightful share of 36 million pounds deposited in a London bank seven decades ago.

Mir Osman Ali Khan: All-time Richest Person in India

• Osman Ali Khan held the title of H.E.H., His Exalted Highness, as the Nizam of Hyderabad, widely considered one of the wealthiest individuals in global history.
• His estimated net worth was approximately 2% of the United States Gross Domestic Product at the time.
• Mir Osman Ali Khan’s image graced the cover of Time magazine in 1937, symbolizing his global recognition.
• As a semi-sovereign ruler, he minted his own currency, the Hyderabadi rupees, and possessed personal assets rumored to include £100 million in gold and silver bullion, along with an additional £400 million in jewelry as of 2008.
• The primary source of his wealth stemmed from the Golconda mines, which were the exclusive suppliers of diamonds worldwide during his era.
• Notably, the Jacob Diamond, valued at approximately £50 million in 2008, was among his treasured possessions and was used as a paperweight by the Nizams.

Osman Ali Khan’s Net Worth

• The Nizam of Hyderabad, Osman Ali Khan, Asaf Jah VII, was so wealthy that he graced the cover of Time magazine on 22 February 1937, hailed as the world’s richest man.
• His peak wealth in the early 1940s was estimated at ₹660 crore (US$79 million), encompassing all his conceivable assets.
• The Nizam’s collection of jewels, including the famed Jacob Diamond used as a paperweight, was valued between US$150 million and US$500 million in today’s terms.
• During his reign, his fortune was estimated at US$2 billion in the early 1940s, equivalent to two percent of the US economy at the time.
• His personal fortune, totaling approximately £110 million, included £40 million in gold and jewels (equivalent to £2,690,199,336 in 2023).
• The Indian government displays the Jewels of the Nizams of Hyderabad in Delhi, consisting of 173 pieces including emeralds weighing nearly 2,000 carats and over 40,000 chows of pearls.
• The collection features a variety of items such as gemstones, turban ornaments, necklaces, pendants, belts, buckles, earrings, armbands, bangles, bracelets, anklets, cufflinks, buttons, watch chains, rings, toe rings, and nose rings.
• Additionally, two rare Bari gold coins, considered among the rarest in the world, were part of the Nizam’s treasures. Himayat Ali Mirza has urged the central government to return these Arabic-script coins to Hyderabad.
• In 1947, the Nizam gifted diamond jewels, including a tiara and necklace, to Queen Elizabeth II on her wedding. The necklace, known as the Nizam of Hyderabad necklace, and the brooches were worn by the Queen until her passing.

Mir Osman Ali Khan’s Donation to India

Mir Osman Ali Khan, the last Nizam of Hyderabad, is remembered not only for his immense wealth but also for his donation to India. His philanthropic efforts have left an indelible mark on the country’s history.

1. The Myth of 5,000 Kilos of Gold:

• A popular lore claims that Mir Osman Ali Khan, the last Nizam of Hyderabad, donated over 5,000 kilograms of gold to fund the war against China.
• However, this claim lacks factual evidence. An RTI (Right to Information) query to the Prime Minister’s office revealed that there is no record of such a massive donation being made.
• The truth lies elsewhere, but let’s explore Mir Osman Ali Khan’s actual contributions.

2. Investment in the National Defense Gold Scheme:

• In 1965, during an economic crisis, the Nizam invested 425,000 grams (425 kilograms) of gold in the National Defense Gold Scheme.
• This scheme aimed to bolster India’s financial stability by mobilizing gold reserves.
• The Nizam’s contribution was equivalent to approximately Rs. 75 lakh (about three-fourths of his annual Privy Purse from the Centre).

3. Other Philanthropic Endeavors:

• Beyond gold, Mir Osman Ali Khan’s generosity extended to various initiatives:
  • Nizam Orthopedic Hospital: He initiated the construction of the Nizam Orthopedic Hospital (now known as Nizam’s Institute of Medical Sciences (NIMS)) and leased it to the government for a nominal rent of Rs. 1.
  • Land Donation: He donated 14,000 acres of land from his estate to Vinobha Bhave’s Bhoodan movement, which aimed to redistribute land among landless farmers.

4. Legacy and Historical Impact:

• As the last Nizam of Hyderabad, Mir Osman Ali Khan left an indelible mark on India’s history.
• His contributions, though not in the form of 5,000 kilograms of gold, reflect his commitment to social welfare, healthcare, and land reform.

Death of Mir Osman Ali Khan

The Nizam remained at King Kothi Palace until his passing, often issuing firmans in the Nizam Gazette on trivial matters. He died on 24 February 1967 and requested burial at Masjid-e Judi, where his mother lay, facing the palace. The state observed mourning on 25 February, closing government offices and flying the National Flag at half-mast. Streets were strewn with broken glass bangles, as countless women adhered to mourning customs.

His funeral procession, drawing millions of people from across religions and regions, marked India’s largest non-religious, non-political gathering to date. Barricades were erected to manage the vast, sorrowful throngs mourning their departed king.

Conclusion

Mir Osman Ali Khan, Asaf Jah VII, the last Nizam of Hyderabad, epitomized an era of unprecedented wealth and influence in Indian history. His reign, spanning from 1911 to 1948, was marked by remarkable contributions to education, infrastructure, and social reforms. Recognized as one of the wealthiest individuals globally, his immense fortune was rooted in the Golconda mines, making Hyderabad a significant diamond supplier. Despite his opulence, Osman Ali Khan’s legacy extends beyond wealth, encompassing enduring contributions to Hyderabad’s development. His passing in 1967 drew a monumental funeral procession, reflecting his enduring stature in the hearts of millions across India.

Also Read:-

Partition of Bengal (1905): History, Causes, and Facts

Last Nawab of Bengal: Heritage, Challenges, and Perspectives

Nizam of Hyderabad: Overview from the 1st to the Present and Last

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