[Letter to C Rajagopalachari]

Summary

This January 9, 1964 letter from M. R. Masani to C. Rajagopalachari encloses a current note on the Swatantra Party’s involvement in the Bihar Jeep Credit dispute. Masani explains that the Party had made payments to the Central Bank on behalf of the Raja of Ramgarh, while maintaining that it was not a party to the underlying credit transaction. The correspondence records the Party’s efforts to secure repayment, clarify its legal position, and avoid litigation.

Key points

• Masani alerts Rajagopalachari that Ramgarh may seek concessions concerning the Jeep Credit matter and provides an updated documentary record.
• The Swatantra Party paid substantial instalments to the Central Bank on the Raja of Ramgarh’s behalf after the Raja failed to discharge his share of the liability.
• Party records state that the Raja was expected to repay Rs. 1,20,000 plus accrued interest and that jeeps held for Party work were to be registered and retained in trust for the Centre.
• Correspondence from the Raja’s representatives allegedly attempted to attribute responsibility for the bank credit and overdraft to the Swatantra Party; Masani’s notes reject that characterization.
• The New India Assurance Company sought repayment and proposed that the Raja surrender 23 jeeps belonging to the Party while settling the outstanding amount.
• Advice from K. M. Munshi and Little & Co. held that the Party was legally uninvolved and should avoid written correspondence with the Raja or his representatives.
• By January 1964, the matter had moved toward litigation between the Raja and the Bank, leaving the Party to protect itself from further legal involvement.