The Nizam of Hyderabad, which had previously obtained a three-month extension to agree on new agreements with the Dominion of India, wrote to the Indian government on 18 September that it was ready to enter into an association agreement with India. But he said membership would cause unrest and bloodshed in the state.  On 11 October, 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 agreement that would not fully cede defence and foreign affairs matters to the Indian government. On the advice of Governor General Louis Mountbatten, Menon prepared a new draft treaty that was referred with the Hyderabad delegation. The Nizam Executive Council reviewed the agreement and approved it by six votes to three. Nizam agreed, but delayed the signing of the agreement.
 As a result, the Indian government proposed a status quo agreement in Hyderabad ensuring that the status quo would be maintained and that no military action would be taken for a year. Under the agreement, India would deal with Hyderabad`s foreign policy, but Indian forces deployed in Secunderabad would be withdrawn.  In the city of Hyderabad, in October 1947, there was a large demonstration in Razakars led by Syed Qasim Razvi against the government`s decision to sign the breastfeeding agreement. The demonstration in front of the homes of Prime Minister Nawab von Chattari, Councillor, Sir Walter Monckton and Minister Nawab Ali Nawaz Jung, the main negotiators, forced them to interrupt their visit to Delhi to sign the agreement on that date.  Both draft treaties were submitted to the House of Princes on July 25. A state negotiating committee was formed, which reviewed the two agreements, consisting of ten leaders and twelve ministers. After discussion, the Committee finalized the two draft agreements on 31 July.  Hyderabad violated all the terms of the agreement: in foreign affairs, by carrying out intrigues with Pakistan, to which it secretly lent 15 million pounds; in defence, by building a large semi-military army; communication, through interventions in border traffic and transit traffic of Indian railways.  India has also been accused of violating the agreement by imposing an economic blockade. It turns out that the State of Bombay unknowingly intervened from Delhi in deliveries to Hyderabad. The government has promised to take it with the provincial governments, but scholar Lucien Benichou says it has never been done. India also delayed India`s arms deliveries to Hyderabad, which was later de affirmed as a violation of the status quo agreement.
 In November 1947, Hyderabad signed a status quo agreement with Indian rule and pursued all previous agreements, with the exception of the deployment of Indian troops to the state. In September 1948, after a year of negotiations and an economic blockade against the state, India invaded India and annexed hyderabad.  Nizam then signed an accession instrument to which India adhered.  Article 4. All disputes arising from this agreement or agreements or agreements are referred to arbitration by two arbitrators, one of whom is appointed by each of the parties, and an arbitrator appointed by those arbitrators. Nizam Osman Ali Khan was the leader of the Hindu majority state of Hyderabad, and his policies were dominated by the Muslim elite. Muslims in Ittehad ul, a powerful pro-Nizam Muslim party, insisted that Hyderabad remain an independent state on an equal footing with India and Pakistan. The Indian government rejected Nizam`s company as a “legalistic claim of dubious validity.”