Partition's Legacy: The 55 Crore Rupees Debt and Its Impact on India and Pakistan
In the aftermath of the partition of India and Pakistan, the monetary and physical division of assets and debts became one of the most contentious issues between the two nations. While significant tracts of the division were implemented, certain challenges and disagreements arose, particularly concerning the 55 crore Rupees debt. This article delves into the distribution, the subsequent disputes, and the impact of the 55 crore Rupees on both countries.
Initial Monetary Transfer
The hotly contested amount was initially Rs. 430.2 million, with Rs. 59 million still pending. However, a more accurate figure was Rs. 490.8 million, as recorded by the Reserve Bank of India (RBI) at the time. Among the directives was a transfer by Indian founder Gandhi to Pakistan, which unfortunately led to his assassination by Nathuram Godse, a Hindu terrorist. The actual amount owed to Pakistan was decided to be Rs. 75 crore, a significant sum for the time period.
Breakdown of Assets and Debts
The assets and debts were divided in specific ratios. Pakistan received 17.5% of all monetary and liquid assets, while India received 82.5%. Liquid assets included printed currency, coins, postal and revenue stamps, gold reserves, and assets of the Reserve Bank of India. For non-liquid assets, India and Pakistan were to share in a 80-20 ratio. This included valuable movable assets such as office furniture, books, and even the contents of government libraries.
One of the most memorable incidents occurred in the Punjab Government library, where sets of the Encyclopedia Britannica were religiously divided between the two dominions. The British colonial rule had left behind a great deal of valuable assets, which had to be distributed, leading to some amusing and intense scenarios. For instance, in one instance, a Police Superintendent in Lahore could not make a fair split of the police band instruments, causing a fist fight over a single trombone.
The 55 Crore Rupees Debt
A substantial part of the division, namely Rs. 75 crore, was deferred and distributed. Out of this, Rs. 20 crore was released on 15th August 1947, the day of partition, and the remaining Rs. 55 crore was set to be transferred by January 1948. However, India was reluctant to pay this debt due to Pakistan’s invasion of Kashmir, controlled by India at the time. India argued that any cash given to Pakistan could be used against India, and the Kashmir issue needed to be resolved first.
Conflict and Resolution
When the Indian government withheld Rs. 55 crore, Gandhi went on a hunger strike to resolve the issue. Gandhi and Nehru managed to facilitate the transfer, much to the relief of both nations. However, India’s resistance emboldened Pakistan, leading to the Kashmir dispute, which continues to this day. Despite the apparent unity in the division process, disagreements over the 55 crore Rupees and the Kashmir issue caused significant delays and tension.
Current Debts and Consequences
Decades later, the issue still lingers as Pakistan still owes India Rs. 300 crore as a pre-partition debt. The 55 crore Rupees debt has certainly left a lasting legacy, impacting the economic and political relationship between India and Pakistan. This historical debt continues to be a contentious issue, often resurfacing in discussions and influencing diplomatic relations.
These events highlight the complex and multifaceted challenges faced by newly independent nations during the partition process. The division of assets and debts required not only economic but also political acumen and discretion. While the 55 crore Rupees debt is a legacy of the past, it continues to shape the relationship between India and Pakistan in the present.