Interest of locals became a rallying point for the residents and protests were being organized on a regular basis to demand removal of Madrasi officials and in support of Mulki-rules, i.e., local jobs only for locals. ‘Jobs for locals only' was already a part of Hyderabad state law since 1919.
Violent protests took place in 1952 against non-mulkis (non localists) as a result of recruitment of people from coastal Andhra. Few students were even shot dead by police during the agitation. As a result, States Reorganisation Committee was formed a year later to divide states on the basis of language. The violence led the commission to divide Hyderabad state and Marathi speaking population was merged with Bombay while Kannada speaking areas were made a part of Mysore state.
Initially, the Commission was not willing to unite Telangana state with Andhra Pradesh inspite of their linguistic similarities. The Telnagaites saw some trepidations coming their way. Telangana had large revenue generating alcohol commerce because unlike other states, they imposed tax on alcohol instead of prohibiting it, but the business was now feared to be benefiting Andhra.
It was also feared that the irrigation plans on Godavari and Krishna rivers would not be a fundraiser for Telangana anymore even though the irrigation plans were being controlled by them. Andhraites were feared to have an upper edge in government jobs primarily because they were more well-read and knowledgeable.
The States Reorganization Commission recommended Telangana to be a separate state and that the unification should take place only if a majority desires so in General Elections scheduled to be held in the year 1961. The then Chief Minister of Hyderabad, Burgula Ramakrishna Rao said that the unification was against the will of Telangites. Yet, he supported the line taken by the central leadership of Congress party that was in favour of unification of Telangana with Andhra.
