Muhammad Ali and British Support in Carnatic Politics

Muhammad Ali Khan Wallajah was the son of Nawab Anwar-ud-din Khan of the Carnatic. Anwar-ud-din Khan was appointed Nawab of the Carnatic in 1744 by Nizam-ul-Mulk Asaf Jah I to bring stability to the region. In August 1749, at the Battle of Ambur, combined forces of the French, Chanda Sahib, and Muzaffar Jung defeated and killed Anwar-ud-din Khan. Chanda Sahib declared himself the Nawab of the Carnatic at Arcot. Muhammad Ali fled south to the rock fort of Tiruchirappalli (Trichinopoly) to organize resistance and claim his succession to the throne.

Dual Faction Alliance in South India

The death of Nawab Anwar-ud-din Khan and Nizam-ul-Mulk created parallel succession struggles in the Carnatic and Hyderabad. These disputes led to opposing political and military alliances backed by European trading companies.

Political Factions in the Second Carnatic War

The Siege of Tiruchirappalli and Clive’s Diversion

By early 1751, Chanda Sahib and French forces surrounded Muhammad Ali inside Tiruchirappalli. The fall of this stronghold would have eliminated British political presence in South India. Thomas Saunders, the British Governor at Madras, authorized a strategic diversion proposed by Captain Robert Clive. In August 1751, Clive led 200 European soldiers and 300 Indian sepoys to surprise and capture Arcot, the capital of the Carnatic. Clive endured a 53-day siege by Chanda Sahib’s son, Raza Sahib. The successful defense of Arcot forced Chanda Sahib to divert troops away from Tiruchirappalli. British reinforcements led by Major Stringer Lawrence and Robert Clive broke the siege at Tiruchirappalli in 1752. Chanda Sahib surrendered to the Tanjore army and was executed. The British installed Muhammad Ali as the Nawab of the Carnatic.

The Wallajah Dynasty and Financial Dependency

Muhammad Ali established his seat of power at Arcot and assumed the title of Wallajah. He depended heavily on British military support to maintain his authority against internal rivals, Maratha raiders, and the rulers of Mysore. To fund British military contingents and satisfy personal expenses, Muhammad Ali borrowed money from East India Company officials, private European merchants, and Indian bankers (Soucars) at high interest rates. These debts became known as the “Carnatic Debts.”

Mechanisms of Financial Control

• Muhammad Ali assigned the right to collect land revenue (Peshkash) from several coastal districts directly to Company servants to repay his loans.
• Company officials used their position as private creditors to influence the political decision-making of the Nawab’s court.
• The accumulation of these debts sparked financial scandals in the British Parliament, leading to investigations into the private fortunes made by Company servants in Madras.

Role in Regional Wars and Expansion

Muhammad Ali supported the English East India Company during major military campaigns across South India:

• Third Carnatic War (1758–1763): Supplied grain, transport animals, and native cavalry to General Eyre Coote during the campaign against the French under Count de Lally.
• Treaty of Paris (1763): Formally recognized Muhammad Ali as the legitimate, independent Nawab of the Carnatic, ending French claims in the region.
• Anglo-Mysore Wars: Assisted British forces against Hyder Ali and Tipu Sultan of Mysore, who repeatedly invaded the Carnatic plains.

Shift of Headquarters and Architectural Legacy

In 1768, Muhammad Ali shifted his official residence from Arcot to Chepauk in Madras to remain close to the protection of Fort St. George. He commissioned the construction of Chepauk Palace, designed by Paul Benfield. The structure became the first prominent example of Indo-Saracenic architectural style in India, combining Mughal motifs with European Gothic elements.

Annexation of the Carnatic

Muhammad Ali died in October 1795 and was succeeded by his son, Umdat ul-Umra. During the Fourth Anglo-Mysore War (1799), British forces seized correspondence at Seringapatam. Lord Wellesley, the Governor-General, claimed this correspondence proved Umdat ul-Umra had maintained secret communications with Tipu Sultan. Following Umdat ul-Umra’s death in July 1801, Lord Wellesley forced his successor, Azim-ud-Daula, to sign the Carnatic Treaty of July 31, 1801. Under this treaty, the Nawab surrendered all civil and military administration of the Carnatic to the English East India Company. In exchange, the Nawab received a stipend equal to one-fifth of the region’s total revenues. This action integrated the Carnatic into the Madras Presidency.

Essential Facts and Historical Trivia

Muhammad Ali ruled as Nawab of the Carnatic for nearly 46 years, from 1749 until his death in 1795. Mughal Emperor Shah Alam II conferred the imperial titles of Wallajah and Anwar-ud-din Khan Bahadur on Muhammad Ali, granting him formal recognition within the Mughal administrative hierarchy. Paul Benfield, a contractor and civil engineer for the East India Company, built Chepauk Palace and became one of the largest private creditors in the Carnatic Debts scandal. The British Parliament passed the East India Company Act of 1784 (Pitt’s India Act), which created a commission to investigate and settle the Carnatic Debts due to widespread corruption in Madras. The administrative takeover in 1801 transformed the Nawab’s status from a regional ruler into a titled pensioner, leading to the creation of the title “Prince of Arcot” in 1867, which continues as a hereditary honorific.