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At the time of the integration of the Princely States, the Government of India assured the rulers' families would be allowed to retain certain private property, and give them a grant in heredity or goverment allowances, measured on the basis of the extent, revenue and potential of the merging states. This grant was called the privy purse.

The hereditory privileges were not consonant with the principles of equality and social and economic justice laid down in the Constitution of India.