The Mulki Rules functioned as an early form of affirmative action, benefiting Backward Castes and Muslims, who did not come from the elite section of that community, while shielding them from bureaucratic dominance by officials from North India, the SEEPC Survey observed.

A section titled “Measuring Backwardness in Hyderabad State under the Nizams” explains that the rules, introduced in 1919, mandated continuous residence of 15 years for eligibility in State employment and higher education. Though not explicitly framed along caste lines, they operated as a mechanism of local preference, widening access for socially and educationally disadvantaged groups within Hyderabad State, the survey stated. The rules, in effect, prioritised local populations in opportunities tied to State structures.

Mir Osman Ali Khan, the seventh Nizam of Hyderabad, put in place certain policies that led to Dalits benefiting from “reserved scholarships, hostels, and separate schools — 186 Depressed Class schools by 1945”. This, despite Urdu being the medium of instruction in schools and elite control limiting access.

Touching upon pressure on the State by Dalit leaders, an excerpt from the report reads, “In 1931, due to sustained pressure from Dalit leaders like Varma and Arigay Ramaswamy, Dalits were officially recognised as Adi Hindus. That same decade witnessed a landmark in political inclusion with the appointment of Arigay Ramaswamy, a Dalit municipal councillor in Hyderabad city, one of the earliest examples of Dalit urban representation under princely rule.”

With the princely State of Hyderabad acknowledging structural disadvantage, the Depressed Classes Trust Board was constituted. It had representation from the Dalit community and a budget of over ₹2.5 crore, the report states. The Board funded hostels, schools, scholarships and welfare services for marginalised groups.

“Hyderabad’s classification of backwardness diverged from British India’s caste census model. It was shaped by community-led advocacy, pragmatic governance, and educational access data such as school enrolments and hostel admissions. This lived, experience-based recognition of exclusion guided the allocation of State benefits and formal identification as Depressed Classes,” the report states.