Phase II (1884–1911) – Mahboob Ali Khan & Salar Jung II
- Salar Jung II became Diwan post-1883 and was biased in favor of Non-Mulkis.
- Replaced Persian with Urdu (1884) and introduced English as compulsory—disadvantaging Mulkis.
- Non-Mulkis were paid higher salaries, and locals lost prominence.
- Mulkis submitted the “Mulki Patram” (petition) to the 6th Nizam.
1886 Employee Civil List
- Mulkis: 246 (52%) – salary share: 42%
- Non-Mulkis: 230 (48%) – salary share: 58%
- This widened resentment among Mulkis.
1888 Gazette Notification
- Issued by Nizam Mahboob Ali Khan:
- First official use of the term “Mulki”.
- 12-year residence defined as criteria for Mulki status.
- Preference to Mulkis in jobs; Non-Mulkis to get special permission.
- However, Non-Mulki appointments continued.
Religious and Cultural Divide
- Though 90% of the population were Hindus, most jobs were held by Non-Mulki Muslims (10%), causing communal tension.
1894 Civil List (Under Salar Jung II)
- Total gazetted employees: 680
- Mulkis: 233
- Non-Mulkis: 447
- Hindus: only 63 (of which only 20 were Mulki Hindus)
- Non-Mulki domination more than doubled since 1886.
Maharaja Kishan Parshad (1901–1912)
- A Mulki Hindu and Diwan, he strongly supported Mulkis.
- Clashed with Kaasan Walker, Finance Minister, who:
- Promoted Non-Mulkis.
- Divided Urdu dialects (Northern = civilised; Southern = uncivilised).
- Kishan Parshad resisted this bias and is considered the “Godfather of the Mulki Movement.”
1910 Notification
- Declared:
- Non-Mulki posts are temporary.
- Merit-based recruitment through exams.
- Priority to qualified locals.
- These efforts partially succeeded in curbing Non-Mulki dominance.
Publications and Press Support
- Pro-Mulki:
- Hyderabad Recorder defended Mulki rights.
- Pro-Non-Mulki:
- Ilahibaksh: “Where is a clever Mulki to rule Hyderabad?”
- The Mohammadin: Justified Non-Mulki presence, citing Salar Jung’s invitations.
Prominent Individuals
- Rai Balamukund:
- First Hindu Mulki graduate (Madras University, 1885).
- Became Chief Justice of Hyderabad High Court in 1908.
- Hyderabad High Court was established in 1890.