Treaty of Allahabad
The Year 2015 marked 250 years of Treaty of Allahabad. The Treaty of Allahabad was signed on August 12, 1765 between Mughal Emperor Shah Alam II and Robert Clive as a result of the Battle of Buxar. With this treaty, East India Company got a strong political footing in India. Before the treaty, the British only had a strong trading relation with Indian rulers. This treaty was one the factors that made sure that they would rule India for two centuries.
Circumstances that led to signing of Treaty of Allahabad and its consequences
The treaty was result of the Battle of Buxar fought between East India Company and combined armies of Bengal, Awadh and Mughal Emperor Shah Alam II. The defeated emperor had to sign this humiliating treaty dictated by Robert Clive. The treaty gave the Company access to nearly 40,000 square kilometres of taxable fertile land. British were entitled to collect tax directly in lieu of Rs 26 lakhs tribute to be paid annually to the Mughal. The districts of Kora and Allahabad were also returned to the Mughal Emperor. The Nawab of Awadh had to pay Rs 53 lakhs in war indemnity and was sent back to Awadh, with a promise to money to operate the court and a subsidiary army. Nawab of Bengal retained the judicial functions but the Company had the power to collect revenue.
This new set up called Dual System of Government and acquisition of the diwani rights by the Company is an important event in the history of India. This legally acknowledged the British control over Bengal, Bihar and Orissa; only foujdari and administrative authority was left to the Nawab.
With this, the East India Company got richer than before and needed no money from England to buy merchandize. The money earned was send to England and not spent on Bengal, this drain of wealth started from India.