From the time of Independence, the Government of India had taken up intensified actions on the Nizam’s State in many ways. As part of this, the Indian Government banned the ‘Deccan Airways’, and as a result, the transport, information, and communication links of Hyderabad State with the rest of the world were restricted.

Similarly, the railway track of the Madras–Delhi Grand Trunk Express was shifted from the interior parts of Hyderabad State to its borders. The telephone system was jammed to restrict communication, and restrictions were passed on the Indian Government Securities that had been transferred to Hyderabad State.

Accordingly, the Government of India:

• Banned the export of gold, diamonds, and coins from Hyderabad State.

• Stopped all transactions between the Hyderabad State Bank and the Imperial Bank of India.

As per Jawaharlal Nehru’s announcement at an Indian National Congress session, there remained only two options for Hyderabad State: either it should merge with the Indian Union or face war.

From the above factors, it becomes clear that India deliberately attempted to sabotage the Standstill Agreement and had also prepared for Police Action on Hyderabad State.