 The British then sold Kashmir to the Raja of Jammu, Gulab Singh, for 7.5 million rupees (75 lakhs).The treaty of sale was concluded on 16March 1846, in the Treaty of Amritsar and signed by Gulab Singh, Hardinge, Currie and Lawrence.Gulab Singh thus became the founder and first Maharaja of the princely state of Kashmir and Jammu.