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Privy Purse in India
In India, the Privy Purse was a payment made to the royal families of erstwhile princely states as part of their agreements to first integrate with India in 1947, and later to merge their states in 1949 whereby they lost all ruling rights. The Privy Purse was continued to the royal families until the 26th Amendment in 1971, by which all their privileges and allowances from the Central Government would cease to exist, was implemented after a two-year legal battle. In some individual cases however privy purses were continued for life for individuals who had held ruling powers before 1947.〔HH Maharani Sethu Lakshmi Bayis allowance was reinstated after a prolonged legal battle until her death in 1985. "At the turn of the Tide, the Life and Times of Maharani Sethu Lakshmi Bayi, the Last Queen of Travancore" by Dr. Lakshmi Raghunandan〕
== History ==
When Britain partitioned British India and granted independence to the new Dominions of India and Pakistan, more than a third of the subcontinent was covered by princely states, with rulers whose position and status within the Indian Empire had varied. In 1947 there were more than 560 such princely states in India, over which the British Crown had suzerainty but not sovereignty. Relations with them was determined by subsidiary alliances and other treaties. A system of Gun salutes also determined the importance of each state. By the Indian Independence Act 1947 the Crown abandoned its suzerainty, leaving the rulers of the states free to choose to accede either to India or to Pakistan or to remain fully independent.〔Ishtiaq Ahmed, ''State, Nation and Ethnicity in Contemporary South Asia'' (London & New York, 1998), p. 99〕 Most had been so dependent on the Government of India that they had little choice about accession. By the eve of independence, most of the non-Muslim states had signed Instrument of Accessions to India, but only one to Pakistan. Only a few states held out for complete independence after the British left India. Due to the diplomacy of Vallabhbhai Patel and VP Menon, Travancore, Bhopal and Jodhpur signed the Instruments of Accession before 15 August 1947. Even after independence three states vacillated, namely Kashmir, Junagadh and Hyderabad which were integrated later.
The Instruments of Accession needed the states to only cede defence, communications and foreign relations to India. Democratic institutions were introduced in these states and it was only in 1949 that they were fully merged with India to form new states. Thus Travancore Ambliara and Cochin merged into India and formed the new state of Thiru-Kochi. Although in 1947 the royal families had been allowed to retain large sums of money as their Privy Purse, in 1949 with the states and its revenues being entirely taken over by the Government of India, it was the Indian Government that provided the rulers and their families with Privy Purses that were determined by several factors such as revenue of the state, gun salute enjoyed, antiquity of the dynasty and so on.〔"Maharaja" by Jarmani Dass〕 Dewan Jarmani Dass of Kapurthala says:
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