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Sehore Family's 100-Year-Old Claim: Rs 35,000 Loan to British During War Triggers Legal Dispute

Published On Thu, 26 Feb 2026
Rohan Shetty
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A quiet family in Madhya Pradesh is stirring up a century-old financial dispute, demanding the UK government repay a wartime loan their grandfather extended to British colonial rulers over 100 years ago. The Rs 35,000 borrowed in 1917 could now be worth crores with interest, according to descendants who have preserved the original receipt and are preparing legal action.

Seth Jummalal Ruthia, a prominent businessman from Sehore, lent the sum to the British administration in the Bhopal princely state during the cash-strapped days of World War I. The receipt, signed by a British political agent, was tucked away for generations until Vivek Ruthia, Jummalal's grandson, took charge of family documents following his father's passing in 2013.

Vivek, now leading the charge, views it as an unpaid sovereign obligation. "This isn't just about money—it's about honoring a promise from an era when empires borrowed from local traders to fund their wars," he told local media. The family, still active in regional trade with properties in Sehore and nearby towns, sees this as preserving their legacy.

Adjusted for inflation and compound interest, experts estimate the debt could exceed several crores today—enough to highlight how colonial transactions linger in India's financial folklore. Historical parallels abound, like unresolved WWI reparations that dragged on for decades across Europe.

However, lawyers caution that statutes of limitations, India's 1947 independence shifting liabilities, and UK sovereign immunity laws pose steep challenges. Similar claims from the Raj era, such as pre-independence bonds, have rarely succeeded in courts but often spark public debate on colonial accountability.

This case revives stories of overlooked debts from British rule, where Indian merchants bankrolled imperial needs from railways to warfare. In the 1990s, families pursued similar claims on frozen assets, though most dissolved without payout. As the UK grapples with its post-Brexit economy, this unusual demand from Sehore could fade into obscurity or ignite fresh conversations on historical justice.

Disclaimer: This image is taken from NDTV.