Assertion: After the end of princely rule, the families of former rulers were allowed to keep certain private assets and receive a hereditary grant or government payment.

Reason: Following the 1967 elections, Indira Gandhi backed the call to abolish privy purses, but K Kamraj opposed it, considering it morally wrong and a betrayal of trust with the princely rulers.

The Assertion is correct but the Reason is incorrect.

Indira Gandhi advocated for the government to eliminate privy purses, whereas Morarji Desai criticized the action, labeling it as morally unjust and a violation of trust with the princely leaders.