Indira Gandhi did not reply to Bhutto's letter, but wrote one in December, 1976, after the Indian army division returned empty-handed after three months of search.
On December 31, 1976, Indira Gandhi wrote to Bhutto: "I had asked our legal experts to give careful consideration to the claim you made on behalf of Pakistan. They are of the clear opinion that the claim has no legal basis. Incidentally, the treasure has turned out to be non-existent."
Bhutto wrote: "Both our countries have taken the same view of the rights of the princely order and, with complete justification, abolished it as an appendage or association of the colonial regime. I am certain that no one can maintain the argument that your government's action involves confiscation of the private property of any individual or dynasty."
"It is clear that the treasure is a historical inheritance of the subcontinent which was bequeathed to it by its pre-colonial sovereignties, especially the Mughal emperors in coalition with their Rajput allies.
"That, before or during the anarchy which ravaged the subcontinent and invited foreign domination, these assets were misappropriated and hoarded by a particular warlord has no bearing whatsoever on their legal or moral ownership." , wrote Bhutto.
