After the merger of Hyderabad state with India, the government had to address various financial and administrative issues. This included managing the finances of Nizam’s jagirs and overseeing the affairs of tenants on land parcels controlled by jagirs. The state also had to take control of Sarf-e-Khas, crown lands belonging to the Nizam family. The Nizam had a system of jagirdars, jamindars, and inamdars who worked for his government. The state had to pay a large sum to the Nizam as part of the merger, but in return, he surrendered his rights over his lands. Additionally, tiny jagirs were abolished as per the Hyderabad Jagir Abolition Regulation rules.
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