British War Bonds: What is 1917 Indian war loan that MP family invested ₹35,000 in?

The UK government has responded to a request from 63-year-old Vivek Ruthia from Sehore, Madhya Pradesh, who claims that the British government had borrowed ₹35,000 from his grandfather in 1917.

According to a Times of India (TOI) report, Ruthia’s legal team received an email believed to be from the UK’s Debt Management Office (DMO), seeking copies of the original loan certificate and other documents supporting their claim.

“I am extremely happy. I never imagined there would be a response at this stage. I hope this reaches a logical conclusion. After all, it is no longer just about money—it is a matter of ego now,” Ruthia was quoted as saying by TOI.

He said the family would extend full cooperation and hoped British authorities would be able to verify whether records related to the loan still exist.

What is the 1917 loan certificate?

At the heart of the claim is a certificate dated June 4, 1917, which has been preserved by the Ruthia family for more than a century.

The document shows that businessman Seth Jumma Lal Ruthia, of the firm Seth Rama Kishan Jaskaran Ruthia in princely Bhopal, subscribed ₹35,000 to the Indian War Loan floated by the British government during World War I. The certificate carries the signature of WS Davis, who was then the Political Agent in Bhopal.

War loans were government-issued debt instruments through which the British administration raised funds from traders and wealthy citizens to finance military expenditure during World War I.

How much could the ₹35,000 be worth today?

Investors were promised fixed returns, with the 1917 Indian War Loan offering an interest rate of 5.5%. Ruthia claims the loan was never repaid.

He had earlier told TOI that if the 5.5% interest rate were calculated for 109 years (1917–2026), the amount would already run into crores. If indexed to gold, the value would increase further, as gold prices have risen more than 3,000 times since 1917.

The family continues to own properties in Sehore, Indore and Bhopal and has business interests in agriculture, hospitality and real estate. However, like many old landed families, the Ruthias are also involved in property disputes, including cases concerning legacy rents that were fixed at nominal amounts decades ago.

How did Ruthia find the documents?

Vivek Ruthia, Seth Jumma Lal Ruthia’s grandson, said he found the documents in his grandfather’s will, which detailed correspondence with the then British government and, according to him, clearly showed that the British had borrowed the money.

Seth Jumma Lal Ruthia died in 1937, 20 years after the loan was made to the British government. The British subsequently left India in 1947, a decade after his death.