In 1846, the British sold Kashmir to Gulab Singh, the Dogra ruler of Jammu, under the:

Under the Treaty of Amritsar, signed on 16 March 1846, the British East India Company sold Kashmir to Gulab Singh, the Dogra ruler of Jammu, for 75 lakh rupees (Nanakshahi).

Background:

• After the death of Maharaja Ranjit Singh in 1839, the Sikh kingdom of Punjab became unstable.
• The First Anglo-Sikh War (1845-1846) broke out between the British and the Sikhs.
• The Sikhs were defeated in battles at Mudki, Ferozeshah, Aliwal and Sobraon.
• Gulab Singh, a Dogra noble who had served Ranjit Singh and was the Raja of Jammu, kept away from the fighting and acted as a mediator.

The first treaty after the war:

• Under the first peace treaty with the Sikh state (March 1846), the Sikhs had to pay a war indemnity of 1.5 crore rupees.
• Since the Sikh treasury could not pay the full amount, they ceded the hill territories between the Beas and the Indus, including Kashmir, to the British in place of part of the payment.

The Treaty of Amritsar (16 March 1846):

• A week later, the British transferred Kashmir and the hill territories east of the Indus and west of the Ravi to Gulab Singh, in return for a payment of 75 lakh rupees.
• Gulab Singh accepted British supremacy, and agreed to present a horse, twelve goats and three pairs of Kashmiri shawls to the British every year as a symbol of loyalty.

Thus, the princely state of Jammu and Kashmir was created, ruled by the Dogra dynasty.

Later history:

• The Dogra dynasty ruled Jammu and Kashmir until 1947.
• The last ruler, Maharaja Hari Singh, signed the Instrument of Accession to India in October 1947.

Other treaties:

Treaty of Bhyrowal (December 1846): placed the Sikh state under a British resident and a council of regency.

Why not the other options?

• ✗The Treaty of Lahore and the Treaty of Bhyrowal dealt with the Sikh state.
• ✗The Treaty of Gandamak was with Afghanistan.