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Question

Mughal Emperor Shah Alam appointed the British East India Company as the Diwan of the province of Bengal in the year _______.

This question was previously asked in
SSC CGL 2020 Tier-II (English) Previous Year Paper (29-Jan-2022)
The correct answer is

1765

Shah Alam II Granting Diwani of Bengal to British East India Company

The question asks about the specific year when the Mughal Emperor Shah Alam II granted the Diwani rights of the province of Bengal to the British East India Company. This event is a significant turning point in the history of British rule in India.

Understanding the Diwani

The term 'Diwani' refers to the right to collect revenue from land. Granting the Diwani of a province meant handing over the control of its financial administration, specifically the collection of land revenue.

Context: After the Battle of Buxar

This grant of Diwani took place in the aftermath of the Battle of Buxar, which was fought in 1764. The British East India Company, led by Hector Munro, defeated the combined forces of the Nawab of Awadh (Shuja-ud-Daulah), the Mughal Emperor Shah Alam II, and the Nawab of Bengal (Mir Qasim).

The Battle of Buxar established the military supremacy of the British East India Company in Bengal and beyond, paving the way for political control.

The Treaty of Allahabad and the Diwani Grant Year

Following the Battle of Buxar, the Treaty of Allahabad was signed in 1765. There were two separate treaties signed by Robert Clive:

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

It was through the treaty with Shah Alam II that the British East India Company obtained the Diwani rights for Bengal, Bihar, and Odisha (though control over Odisha was less complete at that time). In return, the Company agreed to pay an annual tribute (peshkash) of 26 lakh rupees to the Emperor and provide him with Kora and Allahabad.

Therefore, Mughal Emperor Shah Alam II appointed the British East India Company as the Diwan of the province of Bengal in the year 1765.

Significance of the Diwani Grant (1765)

  • It legitimized the British East India Company's control over the revenue administration of a vast and wealthy region.
  • The Company could now use the revenue from Bengal to finance its expenses, including the purchase of Indian goods for export, reducing the need to import bullion from Britain.
  • This grant marked the formal beginning of the Company's territorial rule in India, transitioning from a trading body to a political power.

Revision Table: Key Events and Years

Event Year Significance
Battle of Plassey 1757 Established British influence in Bengal.
Battle of Buxar 1764 Confirmed British military dominance.
Treaty of Allahabad & Diwani Grant 1765 British East India Company gains Diwani of Bengal, Bihar, Odisha. Formal start of political rule.

Additional Information: Shah Alam II and Treaty of Allahabad

Shah Alam II (1728-1806): He was the Mughal Emperor during the period of British expansion in India. Despite his imperial title, his actual power was limited. His defeat at Buxar forced him to accept terms that significantly boosted the East India Company's power.

Treaty of Allahabad (1765): Signed by Robert Clive with Shah Alam II and Shuja-ud-Daulah. The treaty with Shah Alam II granted the Diwani of Bengal, Bihar, and Odisha to the East India Company. The treaty with Shuja-ud-Daulah forced him to cede Allahabad and Kora to Shah Alam II and pay a war indemnity to the Company. This treaty consolidated British political and economic power.

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