All his hopes of remaining independent have been dashed. Nizam could do nothing in the above circumstances, except to sign the status quo agreement with India. British influence led him to sign the agreement. November 1947, just three months after independence. Patel told the Constituent Assembly that nizam had signed the status quo agreement and that Hyderabad was thus part of India. He signed the agreement on Lord Mountbatten`s orders and sent it back the same day with a secret letter. In the letter, Nizam mentioned that Nizam would remain neutral in the event of war between India and Pakistan. V. P. Menon was dismayed by the chances that Patel`s letter would be noticed. He thought the consequences would be serious.
Originally, in 1945, the Communists targeted the zamindars and even the Hindu-Deshmukhs, but soon they launched a large-scale revolt against Nizam. From mid-1946, the conflict between the Razakars and the Communists became increasingly violent, with both sides resorting to increasingly brutal methods. According to an Indian government pamphlet, the Communists had killed about 2,000 people until 1948.  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.  The agreement made on the twenty-ninth day of the 199th day between the Dominion of India and the Nizam of Hyderabad and Berar. A status quo agreement was an agreement signed between the new independent lords of India and Pakistan and the princely states of the Anglo-Indian Empire before their integration into the new reigns. The form of the agreement was bilateral between a government and a spring state. It provided that all administrative agreements between the British crown and the State would remain unchanged between the signatory regime (India or Pakistan) and the spring state until new agreements were concluded.
 Prior to the military action against the Laik Ali government, there had been many discussions between various national leaders, ministers and civil servants, as well as military officers.