Understanding the Treaty of Allahabad (1765)

The Treaty of Allahabad was a significant agreement signed in 1765 after the Battle of Buxar (1764). This battle was fought between the forces of the British East India Company, led by Major Hector Munro, and a combined army of the Mughal Emperor Shah Alam II, the Nawab of Awadh (Shuja-ud-Daulah), and the Nawab of Bengal (Mir Qasim).

The British victory at Buxar gave the East India Company immense political power in Northern India, especially in Bengal. The subsequent treaty formalized this power shift.

Key Outcomes of the Treaty of Allahabad

Two separate treaties were signed in August 1765:

• One with the Mughal Emperor Shah Alam II.
• One with the Nawab of Awadh, Shuja-ud-Daulah.

The most crucial outcome, particularly regarding the East India Company's power in the region, stemmed from the treaty with the Mughal Emperor.

Grant of Diwani Rights

Under the Treaty of Allahabad, the Mughal Emperor Shah Alam II granted the East India Company the Diwani rights of Bengal, Bihar, and Orissa.

• Diwani refers to the right to collect revenue and administer civil justice.
• Before this, the Diwani function was managed by the Nawab of Bengal.
• With this grant, the Company became the chief financial authority in these rich provinces.

In return for the Diwani rights of Bengal, Bihar, and Orissa, the East India Company agreed to pay the Mughal Emperor an annual sum of 26 lakh rupees.

The Nizamat (military defense, criminal justice, and police functions) technically remained with the Nawab of Bengal, who was appointed by the Company and received a stipend. This arrangement led to the establishment of a 'Dual System' of government in Bengal, where the Company held real power (Diwani) while the Nawab held responsibility (Nizamat).

Other Provisions of the Treaty

• The districts of Kara and Allahabad were taken from the Nawab of Awadh and given to the Mughal Emperor Shah Alam II.
• The Nawab of Awadh, Shuja-ud-Daulah, was restored to his remaining territories, but he had to pay a war indemnity of 50 lakh rupees to the Company.
• A treaty of mutual friendship and alliance was signed between the Company and the Nawab of Awadh.

Analyzing the Options

Let's look at the given options in the context of the Treaty of Allahabad (1765):

1. Diwani Rights of Bengal, Bihar and Orissa: As discussed, this was the primary grant received by the East India Company from the Mughal Emperor under the treaty. This gave them control over revenue collection in these key provinces.
2. Trading Rights over Coromandel Coast: Trading rights were gradually acquired over many years and different regions, but the specific, massive grant associated with the Treaty of Allahabad was the Diwani of Bengal, Bihar, and Orissa, not trading rights over the Coromandel Coast.
3. Right to interfere with the politics of Delhi: While the treaty significantly increased the Company's political influence in Northern India, the primary focus was on the revenue administration and control over Bengal, Bihar, and Orissa. Direct interference in the politics of Delhi became more pronounced later.
4. Acceptance by Nawab of Bengal to build a fort at Hugli: The Company had already established trading posts and built fortifications in various places much earlier than 1765 (like Fort William in Calcutta). The Treaty of Allahabad dealt with much broader issues of revenue administration and political control after the Battle of Buxar, not the permission to build a fort at Hugli.

Based on the historical facts of the Treaty of Allahabad (1765), the East India Company primarily obtained the Diwani rights of Bengal, Bihar, and Orissa.

Revision Table: Treaty of Allahabad (1765)

Additional Information: The Dual System in Bengal

The grant of Diwani rights through the Treaty of Allahabad led to the implementation of a 'Dual System' of government in Bengal by Robert Clive. In this system:

• The East India Company held the Diwani (revenue collection and civil justice). They exercised this power through their Indian agents.
• The Nawab of Bengal held the Nizamat (criminal justice, law and order, defense). However, the Nawab was dependent on the Company for funds and military support, effectively making him powerless.

This system allowed the Company to control the wealth of Bengal without taking direct administrative responsibility for governance and justice, leading to widespread exploitation and suffering in the province until it was abolished by Warren Hastings in 1772.