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The Mughal Emperor _______ Granted the Diwani of Bengal, Bihar and Orissa to the East India Company in 1765

By BYJU'S Exam Prep

Updated on: November 9th, 2023

Mughal Emperor Shah Alam II granted Diwani of Bengal, Bihar, and Orissa to the East India Company. After the Battle of Buxar, the Treaty of Allahabad was signed by Emperor Shah Alam II and Robert Clive in 1765. The signing of the treaty gave the East India Company civil rights over the states of Bengal, Bihar, and Orissa. Subsequently, tax exemption status was restored for the East India Company as well.

Which Mughal Emperor Granted Diwani of Bengal, Bihar, and Orissa to the East India Company

With the signing of the Allahabad Treaty and the power of civil rights in hand, the East India Company’s trade in India increased significantly. In addition, the company used the revenue from India itself for trading in Indian goods. As a result, the inflow of gold and silver from Britain for trade purposes also declined.

The East India Company was granted civil rights after the Treaty of Allahabad was signed by the Mughal emperor Shah Alam II and Robert Clive. After the treaty, the East India Company’s involvement in the trade in India increased. After being defeated in the battle of Buxar, the emperor also sought the protection of the British through the Treaty of Allahabad.

  • The battle of Buxar was fought between the combined armies of the Mughal Emperor Shah Alam II, Mir Qasim, and Shuja Ud Daulah against the British army.
  • However, the Britishers won the battle and the Diwani of Bengal, Bihar, and Orissa was granted to them.
  • Diwani was the right to collect revenue and it was sanctioned to the British by the Mughal Emperor Shah Alam II himself.
  • In return, he received an annual sum along with the districts of Kora and Allahabad.

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