From the Archives (January 8, 1970): Privy purse abolition

The Internal Affairs Committee of the Union Cabinet to-day [January 7, New Delhi] had a detailed discussion on the abolition of privy purses. Mr. Y. B. Chavan, Home Minister, who is meeting the princes to-morrow [January 8] in what is described as the final round of talks, explained to his colleagues the trend of the discussions he had with them some days ago. It is learnt that a firm decision has been taken by the Committee to introduce legislation abolishing privy purses during the Budget session of Parliament. The main question that is now engaging the attention of the Government is the modus operandi in regard to actual abolition. There is a proposal to pay compensation to the princes in instalments. According to a tentative formula finalised to-day the number of instalments will be 20 and there will be variable amounts depending on the quantum of the privy purse now enjoyed by the different category of princes. The princes, however, are not quite happy over this mode of payment since they are not sure that the Government would continue to honour its commitments till all the instalments are cleared.