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Why were the princely states unhappy with the British?

Answer
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Hint: A vassal state under a tribal or indigenous or geographical monarch in a subsidiary coalition with the British Raj was known as a princely state. They were unhappy about their pay, allowances and conditions of services. It violated religious sensibilities and beliefs. Since they were ruled by the British and did not behave independently for fear of being executed. They remained under the Britishers' shadow. They were granted authority, but no money or influence.

Complete answer:
Britain quit India in 1947 with a large jumble of states. Around 584 princely states, also known as "native states," remained in India, which were not completely and formally part of British India, the portions of the Indian subcontinent that had not been invaded or annexed by the British but were under indirect control, subject to subsidiary treaties, and were not fully and formally part of British India.

While these local monarchs were bound by numerous treaties restricting their sovereignty and surrendering their foreign policy to Britain, they were also free to have their own armies, legislation,
courts, banks, and economic structures.

When the British left India, their arrangements with these local rulers dissolved, allowing these monarchs to claim their independence. The Congress party, which had ambitions for social development and income transfer, was also despised by these monarchs.

Note: Travancore, Cochin, and Malabar are the three princely states that now make up the kingdom of Kerala. When the British left India, Sir CP Ramaswamy Iyer, the Diwan of Travancore, declared that Travancore would become an independent state. The princely states of the Indian subcontinent were ruled by the British in an indirect manner. Hyderabad was India's largest princely state. There were 11 provinces under British India.