The Ruthia Family's Century-Old Loan to the British Government

The Ruthia family's historical loan to the British government, amounting to ₹35,000 in 1917, has resurfaced as a topic of interest in Sehore, Madhya Pradesh. With the current value estimated in crores, the family is preparing to reclaim this amount through legal channels. This article delves into the family's legacy, their business ventures, and the implications of their claim against the British government. As they navigate this century-old financial matter, the Ruthia family's story intertwines with the rich history of the region, raising questions about historical debts and their modern-day relevance.

By Narendra Chaudhary Mar 6, 2026, 04:47 IST

A Historical Financial Matter from Madhya Pradesh

In Sehore, Madhya Pradesh, a family has brought to light a financial transaction dating back nearly a century, where they lent ₹35,000 to the British government. In today's terms, this amount is estimated to be worth several crores, sparking significant interest among the public. Who exactly is the Ruthia family, and what is the full story behind this historical loan?

The Ruthia Family's Legacy

This intriguing case from 109 years ago involves a loan given by the renowned businessman Seth Jumma Lal Ruthia in 1917. His descendants are now preparing to send legal notices to recover the amount. The family asserts that the sum lent back then is equivalent to crores today, with reports estimating its current value at ₹1.85 crores.

Why Did the Businessman Lend Money to the British Government?

During World War I, the British government faced severe financial difficulties. It is reported that in 1917, they borrowed ₹35,000 from Seth Jumma Lal Ruthia to manage the administration of the Bhopal state. At that time, this was considered a substantial amount.

Seth Jumma Lal Ruthia passed away in 1937, nearly 20 years after the loan was made. However, the repayment remained unfulfilled and was only recorded in documents. The family claims to have preserved the relevant documents and will-related papers.

Current Status of the Ruthia Family

Although the Ruthia family tends to stay out of the limelight today, they are known to own significant properties in Sehore. Locally, it is said that about 20 to 30 percent of the city's development is on their land. The family has numerous properties in Indore, Sehore, and Bhopal, and is involved in agriculture, hotel businesses, and real estate.

Business Ventures of Seth Jumma Lal Ruthia

Seth Jumma Lal Ruthia was engaged in various business activities, including opium cultivation, cotton trading, operating an oil mill, and grain trading. According to his grandson Vivek Ruthia, his grandfather owned land across several districts, totaling around 1,000 acres in Sehore, Rajgarh, Shujalpur, Bhopal, and various districts in Rajasthan. Additionally, the family was involved in the opium trade extending from Madhya Pradesh to Rajasthan, Gujarat, Maharashtra, and Kolkata.

Family Tree of the Ruthia Family

Vivek Ruthia mentions that his grandfather also donated several acres of land and lent money to many individuals, which was never repaid. Currently, the family is active in various businesses. According to their lineage, Seth Jumma Lal Ruthia had a son, Manak Chandra Ruthia, and a daughter, Manibai Ruthia, both of whom have passed away. Manak Chandra Ruthia had three sons, with the eldest, Vinod, dying in a car accident. Now, Vinay and Vivek manage the family business, which includes hotels, petrol pumps, warehouses, and real estate.

Plans to Recover the Loan

Vivek Ruthia asserts that historical documents inherited by the family clearly mention this loan. He states that under international law, a sovereign nation is obligated to settle its past financial obligations. The ₹35,000 loan from 1917 has now escalated to a value in crores. The family plans to formally present their claim to the British government by sending a notice based on solid documentation.