Concept notes: The East India Company (EIC) was appointed as the diwan of Bengal by the Mughal Emperor Shah Alam II on 12 August 1765. This appointment was a significant event in the history of British colonial rule in India, as it gave the EIC the right to collect revenue in Bengal, Bihar, and Orissa, effectively making them the de facto rulers of these regions.
Explanation: The East India Company (EIC) was appointed as the diwan of Bengal by the Mughal Emperor Shah Alam II on 12 August 1765. This event is a crucial milestone in the history of British colonial rule in India. The term "diwan" refers to the role of revenue collector, and the appointment of the EIC as diwan gave them the right to collect revenue in the provinces of Bengal, Bihar, and Orissa. This appointment was formalized through the Treaty of Allahabad, which was signed on 12 August 1765.
The Treaty of Allahabad was a result of the EIC's victory in the Battle of Buxar in 1764. The battle was fought between the EIC and the combined forces of the Nawab of Bengal, the Nawab of Awadh, and the Mughal Emperor. The EIC's victory in this battle led to the Mughal Emperor Shah Alam II granting the EIC the right to collect revenue in the aforementioned provinces. This marked the beginning of the EIC's direct control over the revenue collection in these regions, which was a significant step towards their consolidation of power in India.
The appointment of the EIC as diwan was a turning point in the history of British colonial rule in India. It allowed the EIC to establish a strong economic base in Bengal, which was one of the wealthiest regions in India at the time. The revenue collected by the EIC was used to finance their military campaigns and to expand their influence in other parts of India. The EIC's role as diwan also paved the way for their eventual control over the entire subcontinent, as they used their economic power to gradually take over more and more territories.
It is important to note that the Treaty of Allahabad was not the only factor that led to the EIC's consolidation of power in India. The decline of the Mughal Empire, the internal conflicts among Indian rulers, and the EIC's superior military technology and organizational skills also played significant roles. However, the appointment of the EIC as diwan on 12 August 1765 was a pivotal event that marked the beginning of the EIC's direct control over a significant part of India.
Understanding the historical context and the significance of the Treaty of Allahabad is crucial for comprehending the broader narrative of British colonial rule in India. The Treaty of Allahabad and the appointment of the EIC as diwan are often discussed in the context of the decline of the Mughal Empire and the rise of British power in India. These events are frequently examined in history exams and competitive examinations such as the UPSC Civil Services, IAS Prelims, IAS Mains, and State PSC Exams.