Introduction

The Mulki-Non-Mulki conflict in Hyderabad became a major socio-political land issue during the reign of the 5th Nizam, Afzal-ud-Daulah (1857-1869). It started coming to the fore when Salar Jung-I was appointed Diwan in 1853. He initiated a series of administrative and revenue reforms, which, however, intensified the conflict between natives/Mulkis and immigrants/Non-Mulkis. This period became marked with a struggle over employment opportunities, government positions, and administrative control between the locals and the outsiders.

Causes of the Conflict

1. Administrative Reforms and Non-Mulkis
Although the Mulkis dominated the civil service, the inability of the Mulkis to modernize and implement skill-based recruitment meant that the administrative reforms of the 1850s, culminating in the 1861 Indian Councils Act, could not and did not benefit Mulkis. Subsequently, the influx of non-Mulkis resulted in the erosion of Mulkis’ power within the civil service.
I. Salar Jung’s reforms modernized Hyderabad’s administration, and attracted Kayasthas and Khatris from North India, who sought emplyoment in various government offices.
B. Due to their proficiency in administration, professionals from the Madras Presidency who spoke English were also recruited.
C. Following the Sepoy Revolt of 1857, the disintegration of the Mughal Empire resulted in many North Indians moving to Hyderabad. They were drawn to the Deccan, and many of them went to work in the administration or in various state-run enterprises. This was an expansion of the North Indian population in the Deccan, which had begun in the 18th century.

2. Control of Public Service by Non-Mulkis
A. Salar Jung-I, even though he knew there was resentment among the locals, hired educated Non-Mulkis, especially from Aligarh University, because they had far better administrative skills.
B. Over time, Non-Mulkis started to fill high-ranking positions, and their influence spread throughout the region. They did this by appointing tons of their relatives and friends from North India to high-ranking posts.
C. As a result, a local Mulkis discontent spread across the state. Mulkis, who had felt sidelined long enough, were no longer willing to suppress their state of discontent.

Attempts to Control Non-Mulki Influence

Salar Jung-I saw the developing tensions and took some actions to lessen the influence of Non-Mulkis and safeguard local interests.

1. Limitations on Administration of Non-Mulkis
A. Meeting with the Nizam, Diwan, British Resident, and other high-ranking officials required special permissions for anyone not part of the Mulk.
B. Titles and Jagirs were prohibited from being granted to Non-Mulkis.
C. Non-Mulkis could not have positions in the Hyderabad army.
D. Persian was not replaced by Urdu as the official language. This preserved the dominance of the Non-Mulkis who could not speak Urdu.
2. Balancing Mulki and Non-Mulki Employment
Salar Jung-I strove to strike a balance between two groups in the Deccan, ensuring the employment of skilled individuals while at the same time looking after the rights of native Mulkis.
B. His policies gave priority to the Mulkis and their historical status, but the on-going non-stop domination of the skilled Non-Mulkis continued to create friction.

First Mulki Orders of 1868

In 1868, during the time of Afzal-ud-Daulah, Salar Jung-I formalized job security for Mulkis with the issuance of the First Mulki Orders. These Orders contained several main stipulations, including:
A. Mulkis should be appointed exclusively to all administrative offices in Hyderabad.
B. Giving priority to the locals in the recruitment of personnel for education and government, with the aim of enabling them to acquire the kinds of skills that will allow them to compete with Non-Mulkis.
C. The policy was an early attempt to try and resolve the grievances of the Mulki, which, of course, is only serving to set a nice precedent for the way in which local employment conflicts will be resolved in the future.