The Nizam of Hyderabad, which had previously been granted a three-month extension to conclude new agreements with the Dominion of India, wrote to the Indian government on 18 September that it was ready to conclude an association agreement with India. He said, however, that membership would cause unrest and bloodshed in the state. [7] On October 11, Hyderabad sent a delegation to Delhi with a draft status quo agreement, described as «complex» by V. P. Menon, Secretary of the Ministry of Foreign Affairs. Minister of State Vallabhbhai Patel rejected any deal that would not fully cede defence and foreign policy to the Indian government. On the advice of Governor-General Louis Mountbatten, Menon prepared a new draft treaty that was sent back with the Hyderabad delegation. Nizam`s executive council discussed the agreement and approved it by six votes to three. Nizam expressed its agreement but delayed the signing of the agreement. [8] It is significant that the agreement did not provide for the Dominion of India to deploy Indian forces in the state, while British India had maintained several townships, notably in Secunderabad, as part of its «subsidiary» alliance. Over the next six months, Indian troops were withdrawn from the state.

[15] Article 4. All disputes arising out of this Agreement or the agreements or arrangements shall be referred to arbitration by two arbitrators, one of whom shall be appointed by each of the parties, and one arbitrator appointed by such arbitrators. The standstill agreement was separate from the instrument of accession, formulated at about the same time by the Ministry of Foreign Affairs, which was a legal document that implied a mission of sovereignty to the extent defined in the instrument. [1] Soon, the Nizam, under pressure from Majlis-e-Ittehadul Muslims (Ittehad), the Muslim nationalist party active in the state, withdrew from the agreement. [8] On the morning of October 27, Qasim Rizvi, the leader of Ittehad, organized a massive demonstration of several thousand activists to block the delegation`s departure. He convinced nizam that India, then linked to the defense of Kashmir, did not have sufficient resources to put pressure on Hyderabad. He said a much more favorable deal was possible for Hyderabad. [9] The Nizam then appointed a new delegation, dominated by members of the Executive Council who opposed the previous agreement. [10] Former Hyderabad bureaucrat Mohammed Hyder called the event the «October coup.» From then on, Qasim Rizvi began to lead the government in Hyderabad. [11] Nizam Osman Ali Khan was the ruler of the Hindu-majority landlocked state of Hyderabad, whose politics were dominated by the Muslim elite.