Sharaz Hussain is the son of Choudhary Haq Nawaz and the grandson of Choudhary Fazal Hussain. He is from a very powerful and political family of the disputed territory of Kashmir (Azad Kashmir). His gradfather's brother Zaildar Choudhary Fazal Ellahi was a close friend and adviser to Maharaja Hari Singh (1895–1961) who was the last ruling Maharaja of the princely state of Jammu and Kashmir in India.
In 1947, Hari Singh chose to accede his kingdom to India, although a majority of the kingdom's population was Muslim. At the time Maharaja Hari Singh offered Zaildar Fazal Ellahi to join him in India and have a fresh start, but Zaildar Fazal Ellahi could not give up his roots and refused to go. Maharaja Hari Singh offered to accommodate all his family but the Zaildar had taken a firm stand.
In 1951 Hari Singh's rule was terminated by the state government of Indian-administered Kashmir. His son Yuvraj (Crown Prince) Karan Singh was made 'Sadr-e-Riyasat' ('President of the Province') and Governor of the State in 1964.
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