How THIS Indian royal’s 5000 kg Gold helped during India’s 1965 War – The real story behind it

After gaining independence in 1947, India faced numerous challenges in nation-building, and strengthening its defense forces which was one of the most critical aspects of the nation’s history during that time. The country had just emerged from colonial rule, and its economic resources were limited. At the same time, rising tensions with neighboring countries, including the Indo-Pak wars of 1947 and 1965 and the Sino-Indian War of 1962, called for the urgent need of a well-formed military that had all the equipment.
India’s defense sector required modernisation, advanced weapons, and a strong infrastructure, but financial limitations made this difficult. The government, which was led by Prime Minister Lal Bahadur Shastri, appealed to citizens to contribute to the nation’s defense efforts. To contribute to the country’s military efforts, people from all walks of life, including businessmen, royal families, and ordinary citizens, came up to support the country. During this period, many stories of patriotism and generosity emerged.

Among these stories, Mir Osman Ali Khan, the 7th Nizam of Hyderabad, has long been at the center of stories and one of the most famous rumors surrounding him was that he donated 5000 kilograms of gold to the Indian government during the 1965 Indo-Pak War. This was widely discussed for years, but the real story came to light much later as the reality was quite different.
The truth behind this story came out decades later, when a Right to Information (RTI) request in 2019 revealed that Mir Osman Ali Khan never donated 5000 kilograms of gold. Instead, he invested 425 kilograms of gold in the National Defence Gold Scheme, a program introduced by the Indian government during the war. In return for his contribution, he earned an interest rate of 6.5%, making it a financial investment rather than an outright donation.
In 2020, Nawab Najaf Ali Khan, the Nizam’s grandson, confirmed this account, putting an end to the long-standing myth.
Mir Osman Ali Khan was known as one of the richest individuals in history, who is often referred to as India’s first billionaire. At his peak, his fortune was estimated to be around 2% of the US GDP of that era. His massive wealth included gold reserves, diamonds, and valuable artifacts. In 1937, Time magazine featured him on its cover, naming him the richest man in the world.

Born in 1886, the Nizam ruled over Hyderabad, the largest princely state in British India. He played a key role in modernising Hyderabad, bringing electricity to the region, and establishing key institutions like Osmania University, Osmania General Hospital, the State Bank of Hyderabad, Begumpet Airport, and the Hyderabad High Court.

While the story of the 5000-kilogram gold donation turned out to be a myth, what stories suggest is that the Nizam was a generous philanthropist.
His contributions to education, healthcare, and infrastructure helped shape modern Hyderabad. Even after his rule ended, his influence remained deeply woven into the city’s history.
Mir Osman Ali Khan passed away in 1967, but his impact was evident, as over a million people attended his funeral.
Pictures : Wikipedia