In the 18th century, Pune emerged as a key cultural and financial hub, attracting ambitious entrepreneurs. Among them were Haribhai and Bhaktidas, two brothers who ventured into banking and established themselves as prominent local moneylenders. Their business flourished with the support of Nana Fadanvis, a key minister in the Peshwa government, and the favor of Peshwa Madhavrao I. Bhaktidas managed affairs in Baroda while Haribhai operated in Pune. Their firm, ‘Hari Bhakti Pedhi,’ played a significant role in governance for about fifteen decades, skillfully navigating the political dynamics between the Peshwas and the Gaekwads. Over nine generations, the Haribhakti family maintained their business and reputation through diverse ventures, strong connections with the ruling elite, political engagement, and social philanthropy.
From Parikhs to Haribhaktis: Earning the Name of Glory
The origins of the name ‘Haribhakti’ are rooted in the establishment of a mercantile bank in Pune by brothers Haribhai and Bhaktidas in 1762. They combined their first names, “Hari” and “Bhakti,” reflecting their deep devotion to Vishnu, an alternative name for the Hindu God, and the concept of devotional worship. The firm, named ‘Hari Bhakti Pedhi,’ managed trade and finance for the Pune and Baroda states. The brothers’ commitment to their religious beliefs and their collaborative efforts in managing the business led to the adoption of the name ‘Haribhakti’ by subsequent generations. Today, the surname “Haribhakti” embodies the family’s enduring values and illustrious history.
The Royal Connection: Bonds with Royalty
The Haribhaktis’ success was closely tied to their influential connections with royalty. Their prominence grew through mutual trust and political affiliations. Their relationship with the Peshwa government began when they were granted the village of Kajapur in Dabhoi Taluka on hereditary terms. Initially awarded Meghakui village in Vadodara Taluka, they requested a replacement due to its unsuitability, leading to the grant of Goriad village in 1795.
In 1836, the Shrimant Gaikwad Government awarded the Haribhaktis the villages of Samra and Samri in Choranda Taluka, along with numerous charters. Their assistance to Shrimant Govinda Rao Gaekwad Maharaj in his administrative duties earned them the title “Chiranjiv” (Son of the State) and several hereditary charters. Maganbhai was honored with the Suvarna Chand Bakshis (Gold Medal) and the title “Rajya Ratna” (Gem of the State) during Maharaja Saheb’s Silver Jubilee in March 1908 for his dedicated service.
During royal coronations, Ratanlal Sheth, head of the Merchant Association and heir of the Haribhakti family, was honored with the title “Rajmitra” (Friend of the State) by Maharaja Pratapsinh Gaekwad.
The Establishment of the ‘Hari Bhakti Pedhi’ (Firm)
In the early 19th century, during the reign of Maharaja Anandrao (1800-1819), Baroda State faced significant challenges, including Arab trouble and substantial debt. Diwan Raoji Appaji, struggling with governance, sought assistance from the English East India Company. Major Alexander Walker, sent by the Company in 1802, was instrumental in resolving the issue of unpaid Arab soldiers by disbanding them. However, to pay their arrears, funds were required, which the state lacked. The ‘Hari Bhakti Pedhi’ stepped in to provide financial relief, guaranteeing funds and showcasing their wealth and influence. In 1808, the British appointed Samaldas as Baroda State’s Chief Potedar, and the Pedhi advanced 30 lakhs to the state in a single year. The Haribhaktis also engaged in business with the British and European companies, including the cotton trade through the East India Company.
The State Bankers of the Gaekwads: Expansion in Baroda
Establishing a Financial Partnership
In 1770-1771, the Gaekwads faced the challenge of paying 80 lakh rupees to the Peshwas. They sought the assistance of the Haribhakti brothers, who fulfilled this request, thereby cementing a long-standing financial relationship. This act of support marked the beginning of a significant connection between the Haribhaktis and the Gaekwads.
Expansion into Baroda
In 1771, Maharaja Fatehsinh Rao invited the Haribhakti brothers to establish a branch of their firm in Baroda. The brothers accepted, and the Haribhaktis soon became the official bankers of the Baroda State. Without a state treasury, the Gaekwads depended on bankers like the Haribhaktis for financial management. The Pedhi gained considerable influence over the state’s administration.
Role and Recognition
Under Maharaja Manajirao Gaekwad (1751-1793), the Haribhaktis provided substantial loans, earning a permanent annuity of Rs. 1,296 annually for maintenance. In 1793, Maharaja Govindrao Gaekwad increased their annuity to Rs. 2,250 and formally appointed them as Potedars.
Monopoly and Influence
From 1800, the ‘Hari Bhakti Pedhi’ secured the jara (lease) for opium in various districts, enjoying a monopoly on opium revenues until 1873. By the late 18th century, the Pedhi had become the chief creditor of Baroda State. Maharaja Anandrao Gaekwad granted an additional annuity of Rs. 1,000 in 1801. The Pedhi also took on critical roles such as military paymaster, ijaredar (revenue farmer), manotedar (security provider), and saraaf (currency changer).
Business Ventures and Contributions
In the early 20th century, the ‘Hari Bhakti Pedhi’ was awarded the ijara for operating time-boats between Chandod and Tilakwada. The Haribhakti haveli was renowned for its lavish expenditures, with foreign goods worth thousands exempted from customs duties by Shree Govinda Rao Maharaj, and no tax levied on valuable possessions like jewels. The Haribhakti Pedhi played a crucial role in the development of trade and business in western India.
Haribhai and Bhaktidas: Pillars of Financial Influence
Dynamic Partnership
Haribhai and Bhaktidas, with their clarity of thought and sharp intellect, emerged as invaluable assets to both the Peshwas and Gaekwads. Their complementary traits—Bhaktidas’s calm determination and Haribhai’s enthusiastic energy—made them a formidable team. Their ambition and resourcefulness enabled them to navigate the complexities of 18th-century India, a period marked by significant political and economic transitions.
Historical Context
The 18th century in India was a time of transformation, marked by the shift from medieval to early modern times and the increasing influence of European powers. Local money suppliers became crucial due to the frequent wars and political alliances of the period. The Maratha rulers, in their quest for expanded control, turned to financiers like the Haribhaktis to support their ambitions.
Family Legacy and Expansion
After the deaths of their father, Sheth Laxmidas, and elder brother, Narsinhdas, Haribhai and Bhaktidas took charge of the family business. They faced the challenge with resilience, working to uphold and expand their father’s legacy. In 1745, they seized the opportunity to expand their operations to Pune, driven by their growth-oriented mindset. By 1762, they established ‘Hari Bhakti Pedhi,’ a mercantile bank in Pune, combining their names and expertise.
Significant Achievements
The Haribhaktis quickly became key players in the financial landscape of Pune. Their central office and haveli were situated in Ravivar-Peth, and they became integral members of the Mahajan Sangathan, a collective of vaniya communities. Their reputation for honesty and transparency won them favor with Nana Fadanvis, leading to their appointment as ‘Parekhs’ (bankers) and their involvement in state affairs.
Political and Economic Influence
The rise of hundis (promissory notes) facilitated transactions as the Peshwas expanded their territory. The Haribhaktis established branches in major trading and administrative centers, managing financial transactions under the rulers’ control. By 1765, ‘Hari Bhakti Pedhi’ had become a principal banker and potedar of the Gaekwad in Gujarat, playing a crucial role in the state’s financial operations.
Legacy and Transition
By the late 18th century, the Haribhakti firm was a chief creditor of the Baroda State, significantly contributing to the region’s economic development. In 1795, Bhaktidas passed away childless, and Haribhai followed in 1796, along with his two wives and daughter. The legacy of the Haribhakti family was thus handed over to the next generation, continuing their influential role in the region’s financial and political spheres.
This post was written in collaboration with Krutarth Bhatt.
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