Sarf-e-Khas are crown lands across the princely state of Hyderabad belonging to the Nizam family covering 10,000 square miles.
The reason for this was the great irregularity that used to occur in making payments from the treasury, which, owing to the system of revenue collection at the time, was never regular.
They cover an area of about 10,000 square miles consisting of an entire district of seven talukas known as the Atraf-i-Baldah (surrounding the city of Hyderabad) and eleven talukas in the mofusil distributed in the districts of Aurangabad, Parbhani, Bidar, Bhir, Gulburga and Osmanabad with a total population of about one lakh, the revenues of which, go into His Exalted Highnesses privy purse.
When Begums of the palace and relations of His Highness who had purchased makthas and held lands died without leaving any heir such property was also added to the talukas.
The Sarf-i-Khas territories thus formed yielding at present an annual revenue of a crore of rupees or more are administered by a special officer known as the Sadar-ul-Moham, working directly under the orders of His Exalted Highness.
Of these two sections, the Receipts, as already stated, is incorporated, to all intents and purposes, with the general administration of the country there being special officer only for the Atraf-i-Balda District.