Hyderabad was ruled by Nizam who was autocratic ruler. Indian government even made some concessions when it signed a standstill agreement hoping that Nizam will introduce a representative form of government. But Nizamstarted to expand its military base on encouragement from Pakistan and wanted to take advantage of Indian engagements in Kashmir. Meanwhile, three important developments happened in the state. First, there was rapid growth of a militant Muslim communal organization ‘Ittihad ul Muslimin’ and its paramilitary wing ‘Razakars’. Secondly, in on 7th August 1947, Hyderabad State Congress also launched a powerful Satyagraha demanding democratization. It was ruthlessly suppressed by Nizam and Razakars and more than20,000 were imprisoned as well. Thirdly, peasants of Telangana region led by Communist leadership defended the Razakar attacks and also attacked landlords and redistributed their land and peasants and landless.
All this led to immense unpopularity of Nizam and government of India became impatient and despite its continued efforts Nizam dragged on his feet. Finally government of India launched a military operation in September 1948 and Hyderabad was acceded to India. Nizam was given favorable and generous treatment and he was made ‘Rajpramukh’ or nominal head and was even allowed to keep his enormous wealth and was also given a hefty Privy Purse amount. With merger of Hyderabad, merger of princely states with India was complete. It was also a victory of Indian secularism as Muslims in significant numbers supported cause of people both within and from outside the state.