3. • In the first half of the 18th Century, the East India
Company was establishing itself firmly in Bengal.
• Bengal was rich and fertile province, with a lot of
riverine ports.
EIC trade was especially profitable
• in Bengal.
4. 1696 – Sutanati fortified, after conflict with the
local zamindar.
1698 – EIC buys zamindari of the 3 villages of
Sutanuti, Gobindpur, and Kalikata (Kalighat), for
₹1200.
– These three villages later became modern
Calcutta.
1700 to 1701 – Fort William built at Sutanuti.
– Named after King William III of
England.
5. 1717 – Mughal Emperor Farrukhsiyar gives farmans to the British
mission led by John Surman.
Called Magna Carta of the East India Company.
IMPACT:
In Bengal – exemption of customs duties for the East India
Company’s imports and exports.
– Only an annual payment of ₹3000 to the Mughal Emperor.
– EIC permitted to issue dastaks (passes) for the transport of
goods.
– EIC allowed to rent more lands around Calcutta.
6. The Nawabs of Bengal
1717 – Farrukhsiyar replaced the system of imperial
Mughal viceroys, with hereditary Nawabs in Bengal.
The Nawab of Bengal ruled as the de facto
independent ruler of Bengal, Bihar, and Orissa.
Issued coins in the name of the Mughal Emperor.
1740s – Orissa de facto lost to Marathas.
8. 1740 to 1756 – Nawab Alivardi Khan.
– Support from the rich and influential
Jagat Seth bankers.
1756 – Teenager Siraj ud-Daula became Nawab.
– Many enemies in family.
– Enemies among nobles and merchants,
probably because of his own vices.
9. The Many Enemies of Siraj
• Faujdar of Purnea – Shaukat Jang (cousin)
• Ghasiti Begum (aunt)
• Bengal army’s commander – Mir Jafar (Alivardi Khan’s brother-in-
law)
• Jagat Seth
• Raj Ballabh
• Rai Durlabh
• Omnichand
Court nobles
10. To tackle the situation, Nawab Siraj ud-Daula:
Defeated and killed Shaukat Jang in battle.
Appointed Mohan Lal (a Kashmiri pandit) as administrator,
who held powers of the prime minister.
11. The East India Company’s position
• The EIC had been misusing its trade privileges.
• Company employees used dastaks to smuggle goods and evade
taxes even in their private trade .
Revenue losses for the Nawab.
1756 – Seven Year’s War began in Europe.
– Tensions between EIC and the French in India.
– EIC enhanced military fortifications at Fort William, Calcutta.
12. • Siraj ordered both – the French and the EIC – to halt their
military fortifications.
The French complied, but the EIC did not.
EIC dug a moat around Fort William.
EIC gave asylum to a political refugee – Krishna Das (son of
Raj Ballabh), whom Siraj wanted to capture and arrest.
Siraj developed deep distrust against the British.
13.
14. June 1756 – Siraj sends troops to Calcutta, to
punish the British for constructing
fortifications without permission.
– Siraj’s troops capture English factory at
Kasimbazar.
– Black Hole of Calcutta.
– Colonial accounts say 123/146 died.
15. • In retaliation, EIC sent a force under
Lieutenant Governor Robert Clive and
Admiral Charles Watson.
• The force recaptured Calcutta.
(January 1757)
• Set up a Council there.
• Siraj brought his army to Alinagar*
16. Treaty of Alinagar February 1757
–all old privileges confirmed again.
–Moat around Fort William allowed.
•Now Clive’s forces looked to eliminate French
influence in Bengal.
17. 1757 – Clive and Watson’s forces capture
Chandernagore from the French.
– Siraj had sent reinforcements to
Chandernagore, but EIC had bought the governor of
Hooghly, in order to prevent the help from Siraj
reaching the French.
18. • Clive expelled all French from their factories in Bengal (3rd
Carnatic War ongoing).
• Clive now conspired with the rivals of Siraj, to replace him.
Who sided with Clive?
Mir Jafar
• - Mir Bakshi (Military commander).
• Manikchand - Officer in charge of Calcutta.
• Omichand - Rich merchant.
Jagat Seths
• - Biggest bankers of Bengal.
• Khandim Khan - Commanded a large number of Siraj’s troops.
19. Who sided with Siraj?
• Mir Madan – disgraced army commander.
• Mohan Lal – administrator.
20. EIC and Nawab of Bengal prepared for
battle at a field called Plassey in Bengal’s
Murshidabad district.
Murshidabad was the capital of the
Bengal nawabs.
Siraj had a numerically superior force.
21. Battle of Plassey
• On 23 June 1757.
• Owing to the conspiracy, the commanders of Siraj
refused to attack the EIC.
• Siraj was defeated and killed.
• Mir Jafar was made the new Nawab according to his
deal with Clive.
• Clive became the Governor of Fort William/Bengal
(1757-60).
22.
23. 1757 to 1760 – Mir Jafar – Nawab of Bengal.
The EIC was granted free trade rights in Bengal, Bihar and Orissa.
Personal trade restrictions removed too.
EIC received the Zamindari of 24 Parganas district near Calcutta.
₹2.2 crore paid as war indemnity to EIC.
All French factories handed to EIC.
24.
25. Mir Jafar soon found his treasury empty and realised
he had struck a bad deal.
He protested by inviting the Dutch to attack EIC and
was forced to abdicate in favour of his son-in-law Mir
Qasim.
26. 1760 to 1763 – Mir Qasim.
ceded Burdwan, Midnapore and Chittagong
He to EIC.
Shifted his capital from Murshidabad to Munger (Bihar), in order to
escape EIC influence on court.
Mir Qasim removed duties for internal trade thus bringing Indian
traders at par with EIC (which was already exempt from taxes)
27. He wanted to be independent while company wanted a puppet
1763 – Fought with company, defeated and fled to Awadh.
1763 to 1765 – Mir Jafar made Nawab again.
28. Battle of Buxar October 1764
In Awadh, a confederacy was formed with –
1. Shuja-ud-daulah, Nawab of Awadh
2. Shah Alam II, Mughal emperor
3. Mir Qasim , Nawab of Bengal*
29.
30. • Their combined forces of 40,000 were defeated at Buxar by Hector
Munroe, leading only 7000 troops.
• This victory made EIC a great power in North India.
31. Robert Clive was sent for and arrived
from England
to negotiate a treaty with the mighty
Nawabs of Gangetic plains.
32.
33. Treaty of Allahabad (August 1765)
With Shuja ud daulah of Awadh
• Surrender Kara and Allahabad
to Mughal emperor
₹50 lakh war indemnity
• to EIC
• Offensive and defensive
alliance
• Free trade rights in Awadh
With Shah Alam II of Delhi
• Allahabad and Kara given to
emperor
• Reside in Allahabad fort – prisoner
• Diwani rights of Bengal Bihar and
Orissa given to EIC in lieu of ₹26
lakh pension
34. • Treaty of Allahabad was “a
master stroke by Robert Clive.’’
• Awadh was made a buffer state
against future Maratha
invasions.
• Mughal authority was not
outright uprooted – to prevent
public reaction.
35. The Dual System in Bengal (1765 to 1772)
• Nizamat = Civil administration + criminal justice (law & order)
• Diwani = Revenue
British took over Diwani rights from Mughal but gave the Nizamat
(Civil administration) duties to Nawab of Bengal.
Military defence and foreign affairs of Bengal now lay with the EIC.
36. • For Revenue collection, EIC appointed 2 deputy Nawabs.
EIC got ALL the revenue but paid:
only ₹56 Lakhs annually for Public works and running
administration of ENTIRE Bengal to the Nawab’s administration.
Later reduced to ₹33 lakh.
37. Rationale behind the dual system
• Power without responsibilities.
Open annexation
• may have resulted joint war from princely states.
Evading Parliamentary oversight
• from Britain.
Other European powers
• may not have recognized the authority of
English in India.
• EIC was more interested in financial & commercial gains rather than
territorial acquisitions at that time.
38. The fallout
• This system ruined Bengal and brought its people utter misery.
Indian traders paid up to 40% tax competing with EIC paying 0%.
• Farmers were taxed into misery as no one cared about their welfare
–neither the deputy Nawabs nor the company.
• Great famine in 1769-72 killed nearly 30% population of Bengal.
EIC directors back in London were not happy
• either as their own
officials became highly corrupt – scandal in Parliament.
• In 1772 Warren Hastings, the newly appointed Governor General
abolished the dual system and EIC took Diwani in its own hands.