British Government Borrowed Rs 35,000 Over A Century Ago; Now Indian Family Wants It Back

Last Updated:February 26, 2026, 08:53 IST

The Ruthia family in Sehore seeks repayment of a Rs 35,000 loan given to the British government in 1917 by Seth Jumma Lal Ruthia.

A family in Madhya Pradesh’s Sehore has claimed that the then British government failed to repay a loan of Rs 35,000 taken during the First World War in 1917 and is now exploring legal options to recover what they describe as a historic sovereign debt with interest

The family of late businessman Seth Jumma Lal Ruthia claimed that he lent Rs 35,000 to the British administration in 1917 during the First World War, as per a report by News18 Hindi. At the time, the amount was considered substantial and was reportedly provided to support wartime administration in the princely state of Bhopal.

Now, more than a century later, Seth Jummalal’s grandson, Vivek Ruthia, said he is preparing to send a legal notice to the British government to recover the loan which was never repaid. He said that the documentary evidence of the transaction was recently discovered among old family records following his father’s death.

The document, dated June 4, 1917, stated that Seth Jumma Lal, of the firm Seth Rama Kishan Jaskaran Ruthia, “subscribed Rs 35,000 to the Indian War Loan and thereby showed his loyalty to the Government and Empire." It beares the signature of W S Davis, who was then the political agent in Bhopal.

War loans during that period were debt instruments issued by the British government to raise funds for military expenses during World War I, typically offering 5.5% interest.

Seth Jummalal Ruthia died in 1937, nearly 20 years after the loan was extended. The matter, the family claimed, remained unsettled and gradually slipped into obscurity until now.

Ruthia said that he is consulting lawyers to explore whether a claim can be made against the current UK government.

“It’s not just about money, it’s about justice and history," he said, adding that when adjusted for compound interest, inflation or gold prices, the original Rs 35,000 could now be worth several crores of rupees.

The Ruthia family was once among the most prominent and affluent in Sehore and the Bhopal princely state, with significant landholdings and business interests. Seth Jumma Lal Ruthia was a prominent trader in cloth and grain in Sehore during British rule. At the time of World War I, when the colonial administration was facing financial strain, local officials reportedly approached him for assistance.

They family continues to own property in Sehore, Indore and Bhopal.

Legal experts note that claims involving pre-Independence transactions between colonial authorities and private individuals are rare and legally complex. While no legal notice has yet been sent, the family said that it is determined to pursue the matter.

News india British Government Borrowed Rs 35,000 Over A Century Ago; Now Indian Family Wants It Back

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