Nagarseth of Ahmedabad

Shantidas Jhaveri started building the Chintamani Parshvanath temple in Ahmedabad in 1622. Son of an Oswal Jain merchant from Marwar, Shantidas (1580-1649) was the leading jeweller, bullion trader and moneylender of Ahmedabad. As the richest man of his times and as the jeweller of preference for the Mughal Imperial household, he enjoyed immense prestige. Shantidas was not only a devout Jain but he was also quite active in internal religious politics of the Jains and tried to promote his gaccha (religious faction) and his preferred religious leader as acharya (chief priest). The temple was completed in 1638 at a cost of more than nine lakh rupees.

In 1645, Aurangzeb, young and abrasive new governor of Gujarat, desecrated the temple. Shantidas appealed to Emperor Shah Jahan and an imperial firman restored the temple back to Shantidas. When a matured Aurangzeb replaced Shah Jahan after a war of succession, he not only returned some of the money Shantidas was forced to lend to Murad (one of the competitors for throne, defeated by Aurangzeb) but also requested Shantidas to convey his goodwill to the business community and residents of Ahmedabad–a clear indication of the leadership role of Shantidas in the civic life of Ahmedabad.

Founded in the early years of the fifteenth century, Ahmedabad emerged as a major commercial centre during the Mughal period. It was the principal centre of textile trade (with indigo coming from the nearby town of Sarkhej) as well as a centre of bullion and jewellery trade. The tradition of craft-specific guilds was part of the commercial landscape of Ahmedabad, in line with similar traditions in other Gujarati cities. But it was in this city, during the seventeenth and eighteenth centuries, the unique institution of Nagarseth developed for the first time. Though Shantidas strode the business world of Ahmedabad in the first half of the seventeenth century as a titan, it is doubtful, whether he was ever formally acknowledged as Nagarseth.

In 1724, amidst a general atmosphere of chaos and lawlessness, Ahmedabad fell to the invading Maratha marauders. As the petrified city waited for absolute plunder, head of the jewellers guild and grandson of Shantidas, Khushalchand came forward and paid an enormous ransom out of his own pocket to send the Marathas back. A grateful city, particularly the business community hailed Khushalchand as the saviour and decided that Khushal and his family would receive a small share of each business transaction in the city in perpetuity. There have been many claimants and much politics for civic leadership in Ahmedabad since the demise of Shantidas but this bold and gracious act of Khushal settled the question forever.

Throughout his life, Khushal had to make many sacrifices–fleeing to Delhi or other cities even enduring multiple prison sentences–but in the end, it was his sacrifices as well as a steadfast resolve for ethical business and governance, which earned his family the moral right to leadership for generations. After his death (1748), he was succeeded by his son Nathusa (1720-1793), followed by Nathusa’s younger brother Vakhatchand (1740-1814), Vakhatchand’s son and grandson, Hemabhai (1785-1858) and Premabhai (1815-1887). The long line came to an end in 1977 when the last male member of the Nagarseth family died without an heir (from a splinter line of the family, Dalpatbhai Bhagubhai, came the Lalbhais or today’s Arvind Group).

Kasturbhai Lalbhai

Nagarseth did not head any corporate body of merchants in Ahmedabad. He was formally the head of his own trading guild and a guardian of the city. He was the bridge between the rulers and the most influential group of citizens of Ahmedabad. He also adjudicated among different guilds or merchants. As the ceremonial head of the city, he led the community in some of the religious or social ceremonies. Some of the other cities of Western India came to have Nagarseths following the example of Ahmedabad. Laldas Vitthaldas Parak was the famous Nagarseth of Surat, leading financier to the English and the principal advisor to the merchants in 1732 when they raised an army against the Mughal governor. Pune came to have one from around the last quarter of the eighteenth century after large-scale migration of Gujarati banias and moneylenders to the city.

For more such stories related to Indian business history, see Laxminama: Monks, Merchants, Money and Mantra by Anshuman Tiwari and Anindya Sengupta Bloomsbury 2018 

https://www.amazon.in/Laxminama-Monks-Merchants-Money-Mantra/dp/9387146782