MP businessman’s family seeks repayment of century-old loan to British Raj
Grandson of Madhya Pradesh trader Seth Jummalal Ruthia, Vivek Ruthia, cites written documents claiming Rs 35,000 borrowed in 1917 was never returned
A businessman’s family in Sehore, Madhya Pradesh, has claimed that the British government once borrowed ‘war loan’ from Seth Jummalal Ruthia and it was never repaid.
Nearly 109 years ago, in 1917, the British government reportedly borrowed Rs 35,000 from Seth Jummalal Ruthia, a prominent trader in cloth and grain in Sehore during British rule. At the time of World War I, the colonial administration was facing financial strain.
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The Ruthia family recently discovered written evidence for the claim, and terms the transaction as a "historic and unpaid sovereign debt."
War loan claim
According to Seth Jummalal’s grandson, Vivek Ruthia, who is now consulting experts to send a legal notice to the British government, the documents suggest the loan was taken to streamline administrative management in the Bhopal princely state during British rule and was named as a war loan.
Vivek Ruthia argues that by the standards of that era, the sum was vast and its present-day value would run into crores. "If you calculate the amount based on the gold price of 1917 and compare it to today's rate, the figure becomes significantly higher," he says.
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Seth Jumma Lal died in 1937, about 20 years after extending the loan. His son, Seth Manak Chand Ruthia, safeguarded the documents until he died in 2013, when they were passed on to Vivek Ruthia, who said the matter resurfaced only recently within the family.
What legal experts say
Legal experts note that despite their rarity and complexity, historically documented claims may give rise to unique legal questions, particularly in matters involving pre-Independence transactions between colonial authorities and private parties.
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The Ruthia family was among the most prominent and affluent in the princely states of Sehore and Bhopal, known for its administrative influence and financial clout.
The family continues to own properties in Sehore, Indore and Bhopal, and remains involved in agriculture, hospitality and real estate. However, like many old landed families, it is also entangled in property disputes and cases concerning legacy rents fixed decades ago at nominal rates.