A Hampshire museum today defended keeping a Victoria Cross after the veteran who won it for his heroic service during the Second World War appealed to have it returned.

Gurkha Tul Bahadur Pun was awarded the rare medal for his bravery in Burma in 1944 after he charged a Japanese machine gun nest which had attacked his platoon.

But in 1974, the regimental trust of the 6th Queen Elizabeth's Own Gurkha Rifles paid Mr Pun 40,000 rupees, the equivalent of £300 today, for the VC to be taken into safekeeping.

It is now on display in the Gurkha Museum in Winchester, where it was sent following the amalgamation of the 6th Gurkhas with other regiments to form the Royal Gurkha Rifles.

Mr Pun, 84, said he believed the payment had only been a loan.

His lawyer, Martin Howe, said: ''The medal is his - he risked his life for it. He did not understand he would not get it back.'' Major Gerald Davies, curator of the museum, said the medal had been purchased by the regimental trust to inspire future soldiers.

He said: ''It was bought in 1974 by the regimental trust. It was paid for with the sole aim that the medal would be hung in the guardsroom to inspire soldiers in the future with the deeds of heroism.

''To say it was loaned was incorrect. He was given an advance of money to build a house. He did receive a payment and there are invoices.'' Maj Davies said the medal was handed to the museum for safekeeping in 2003 because of the deployment responsibilities faced by the Royal Gurkha Rifles.