SSC
Under which treaty did the East India Company obtain the Diwani rights of Bengal, Bihar and Orissa from Shah Alam II?
Answer (Detailed Solution Below)View answer ▾Hide ▴
Answer: Option A — Treaty of Allahabad
Detailed Solution
The Treaty of Allahabad was signed in August 1765 between Robert Clive, on behalf of the East India Company, and the Mughal emperor Shah Alam II, after the Company's victory at the Battle of Buxar (1764). Under this treaty, the emperor granted the Company the Diwani, the right to collect land revenue, in the provinces of Bengal, Bihar and Orissa.
In return, the Company agreed to pay Shah Alam II an annual tribute of ₹26 lakh and gave him the districts of Kora and Allahabad. A separate treaty was signed with Shuja-ud-Daula, the Nawab of Awadh, who got back his territory after paying ₹50 lakh as war indemnity and agreed to an alliance with the Company. Awadh became a buffer state between the Company's territories and the Marathas.
The grant of the Diwani was a turning point in the history of British rule. It gave the Company control over the vast revenues of the richest provinces of India, which it used to finance its trade, its army and further expansion. Clive introduced the "dual system" (dual government) in Bengal, under which the Company had the right to collect revenue (diwani), while the Nawab kept the responsibility for administration and justice (nizamat). In practice, the Company had power without responsibility, and the Nawab had responsibility without power. This led to corruption, oppression of peasants and, in part, the terrible Bengal famine of 1770, in which about one-third of the population died. Warren Hastings ended the dual system in 1772.
Why not the other options?
- ✗Treaty of Salbai (1782) ended the First Anglo-Maratha War.
- ✗Treaty of Bassein (1802) was signed between the British and Peshwa Baji Rao II.
- ✗Treaty of Seringapatam (1792) ended the Third Anglo-Mysore War with Tipu Sultan.
Quick tip
Remember: Treaty of Allahabad = 1765, Clive and Shah Alam II, Diwani of Bengal, Bihar and Orissa; dual government ended by Warren Hastings in 1772.
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Arrival of Europeans & Expansion of British Rule — Preparation
This question tests your understanding of Arrival of Europeans & Expansion of British Rule, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers the arrival of the Portuguese, Dutch, English, Danes and French in India, the growth of the East India Company, and the battles, wars and treaties through which British power expanded, including the Battles of Plassey and Buxar, the Anglo-Mysore, Anglo-Maratha and Anglo-Sikh wars, and policies such as subsidiary alliance and the doctrine of lapse. Typical questions ask which battle was fought in which year and between whom, which treaty ended which war, and which Governor-General introduced a policy. For example, the Battle of Plassey (1757) was fought between Robert Clive and Siraj-ud-Daulah, and the Treaty of Allahabad (1765) gave the Company the diwani of Bengal, Bihar and Orissa. Practise the arrival of Europeans and expansion of British rule questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.