The treasure hunt began after Hindu swami Shobhan Sarkar relayed his dream to an Indian government minister who was visiting his ashram last month.
The swami said the spirit of King Rao Ram Baksh Singh, who was hanged in 1858 after rising up against British colonial forces, told him to take care of the 1000-ton treasure, worth almost £30 billion, hidden under the late king's fort in the northern state of Uttar Pradesh. Indian geological and archaeological officials have surveyed the area and found evidence of heavy metal about 60 feet underground.
The Archaeological Survey of India said it would begin digging under a temple contained within the ruins of the old fort.
Interested parties have already lined up to stake a claim to the treasure, believed to be in gold, silver and precious gems.
One of the king's descendants, Navchandi Veer Pratap Singh, said: "If gold is really found there, we should get our share."
Uttar Pradesh state authorities, as well as local officials, also said they had a right to the wealth.