Explanation: The 'Diwani' of Bengal, Bihar, and Orissa was a pivotal event in the history of British colonial rule in India. The term 'Diwani' refers to the right to collect land revenue, which was a crucial source of income and power. The East India Company's acquisition of the 'Diwani' marked a significant shift in the balance of power in India, as it allowed the Company to establish a firm economic and administrative foothold in the region.
The grant of the 'Diwani' was made by Shah Alam II, the Mughal Emperor, in 1765 through the Treaty of Allahabad. This treaty was a result of the Company's military victory over the combined forces of the Nawab of Bengal, Shuja-Ud-Daulah, and the Mughal Emperor himself. The Treaty of Allahabad was a strategic move by the Company to secure its financial interests and consolidate its control over the region.
Shah Alam II, who was in a weakened position due to the Company's military might, had no choice but to grant the 'Diwani' to the East India Company. This decision was a turning point in the decline of the Mughal Empire and the rise of British colonial power in India. The Company's control over the revenue collection in these regions allowed it to finance its military campaigns and administrative expenses, further strengthening its position in India.
It is important to note that the 'Diwani' was not a straightforward grant but was part of a complex political and military situation. The Company's victory in the Battle of Buxar in 1764 was a precursor to the Treaty of Allahabad, which formalized the Company's control over the 'Diwani'. The other options listed (Siraj-Ud Daulah, Shuja-Ud-Daulah, and Alivardi Khan) were regional Nawabs and were not in a position to grant the 'Diwani' to the East India Company. Their roles were more limited to their respective regions and did not extend to the broader political and economic decisions made by the Mughal Emperor.
Understanding the 'Diwani' and its implications is crucial for comprehending the dynamics of British colonial rule in India and the gradual erosion of Mughal power. The event marked the beginning of a new era in Indian history, characterized by the increasing influence of the East India Company and the eventual establishment of British colonial rule across the subcontinent.