Tuesday, 27 August 2013
RISE TO PROMINENCE - Pooled Resources
Marwari's as compared to their Bengali counterparts in Calcutta have an inheritance law that is alleged to favor the manitainence of joint family property.
Marwari’s followed the Mitakshara system where shareholders in a join family property have their property rights vested in them at birth.
In terms of the joint family system, the eldest son of the family would inherit and have as his responsibility the maintenance of the brothers, who pooled their income.
Due to their capital accumulation frompan-North Indian trade, and the ways that families could pool their resources in the Mitakshara system, this made them more solvent.
Bengalis on the other hand followed the Dayabhaga system of inheritance where they would own property separately but would be considered "joint" because of sharing of hearth.
Muslim Law, on the other hand provides a much more dispersed system of inheritance and does not recognize the joint family as a corporate entity. Not surprisingly, Muslim convert merchant groups often preferred to retain Hindu family law to keep their joint family capital together.