Setback for Saif Ali Khan: MP High Court Quashes Inheritance Ruling Over ₹15,000 Cr Bhopal Royal Estate

Bollywood actor Saif Ali Khan has suffered a legal setback in the high-profile inheritance case involving the ₹15,000 crore estate of the Bhopal royal family, as the Madhya Pradesh High Court has overturned a trial court’s 2000 ruling that had declared him and his family rightful heirs.

High Court Orders Fresh Trial

In an order dated June 30, Justice Sanjay Dwivedi remanded the case back to the trial court, stating that the previous decision was based on a judgment that had since been overruled by the Supreme Court.

“The trial court dismissed the suits relying on a precedent already set aside by the Supreme Court. These are suits for partition, and must be reconsidered to determine rightful shares,” said the High Court.

Background of the Dispute

The estate in question belonged to Nawab Hamidullah Khan, the last ruling Nawab of Bhopal Riyasat, who died in 1960. His daughter Sajida Sultan — Saif Ali Khan’s grandmother — succeeded him after her elder sister Abida Sultan migrated to Pakistan in 1950.

The Government of India formally recognized Sajida Sultan as the rightful owner of Nawab Hamidullah’s private properties in 1962. These properties were subsequently inherited by her descendants, including Saif Ali Khan, Sharmila Tagore, Soha Ali Khan, and Saba Ali Khan.

However, other family members, including descendants of Hamidullah’s brother Obaidullah Khan and daughter Rabia Sultan, contested the inheritance, arguing that the division of property should follow Muslim Personal Law, not political recognition or royal succession.

Legal Arguments at a Glance

Saif’s side argued that the inheritance was governed by the merger agreement between the Bhopal Riyasat and India, which designated Sajida Sultan as the successor and rightful heir.

The opposing side claimed that the succession should have followed Muslim inheritance laws, allowing division among all legal heirs of Nawab Hamidullah Khan.

The original 2000 trial court decision was largely based on a 1996 Allahabad High Court ruling related to the Rampur royal family. However, that judgment was overturned by the Supreme Court in 2019, rendering the basis for the Bhopal ruling invalid.

Next Steps

With the High Court now ordering a retrial, the case will return to the lower court for fresh hearings and a decision on whether Saif Ali Khan and his family are entitled to exclusive inheritance or if the estate should be divided among all legitimate heirs.

Legal Representation

Appellants’ counsel included advocates Aadil Singh Bopari, Abhishek Dubey, Ayesha Jamal, K Jaggi, and Gurlabh Singh Sidhu.

Respondents were represented by senior advocates S Sreevastava, Sanjay Agrawal, and a large legal team including Arjun Rao, Sooraj Bajpai, and Varun Tankha, among others.