Like Kashmir, Hyderabad was also a very important State of the sub-continent. It had an area of 82,000 sq. miles population of 160,000,000: It was a rich State and its annual revenue were 260 million rupees. It had its own system of currency and pos age stamps. The population comprised of both Hindus and Muslims. The Hindus and non-Muslin is were in majority, while its Ruler, the Nizam, was a Muslim. The Nizam had the title of "His exalted Highness" and was very popular amongst his people, both Hindus and Muslims.

He was a generous and kind ruler and looked after his people like his own children. He was considered as a faithful ally of the British Government. Hyderabad, being a prosperous and populous State and because of its prestige and importance, felt justified in maintaining an independent status of a sovereign State. However , the Viceroy Lord Mountbatten made it clear to the Nizam that it was not possible for the British Government to agree to the dominion status for the State. Mountbatten also referred to the geographical location of the State and was of the opinion that the State could not remain independent for long as it was surrounded by the Indian territory from all sides.

He impressed upon the Nizam to accede to India. Being a Muslim, the Nizam of Hyderabad, would have desired to accede to  Pakistan if ever need arose . The Indian Government , knowing the intention of Nizam, began pressurizing him for acceding to .India. Lord Mountbatten , the Governor-General of India, did his best to bring Hyderabad in India' fold. The Nizam was not willing to sign _ the document for accession to India. He was willing to enter into a treaty with India in respect of defence, foreign affairs and communications . The Government of India, however, insisted on accession and did not agree to anything else. A standstill agreement between India and Hyderabad was concluded on November 29, 1947.

The Nizam also gave a secret promise to Mountbatten not to accede to Pakistan. K.M. Munshi was appointed India's agent in Hyderabad. He was a staunch believer of united India. After taking charge he began inciting the Hindu population . Allegations of violating the standstill agreement were levelled against Hyderabad . Nizam was asked to arrest Kasim Rizvi, a nationalist leader of lttehadul Muslimin. Threats of military action against Hyderabad were given by Nehru. On August 24, 1948, Hyderabad filed a complaint before the Security Council of the UNO, Indian armed forces entered Hyderabad. After a brief resistance the Hyderabad army surrendered on Se tember 17, 1948. In due course the State was dismembered and incorporated into the different provinces of the Indian Union. The complaint of 108 Pakistan Affairs Hyderabad before the Security Council is still pending.

 
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