In which Governor’s tenure, Diwani rights of Bengal, Bihar and Odisha was granted to East India Company by Emperor Shah Alam?

Key Fact(s)

The Diwani rights—the authority to collect land revenue—of Bengal, Bihar, and Odisha were conferred on the English East India Company in 1765 under the Treaty of Allahabad. This grant was made by Mughal Emperor Shah Alam II during the governorship of Robert Clive, following the Company’s decisive victory in the Battle of Buxar (1764).

The arrangement marked the beginning of the Dual System of Government, where the Company controlled revenues while administration nominally remained with Indian officials. Access to Bengal’s vast revenues enabled the Company to maintain a standing army and expand further. This event is widely regarded as the legal and fiscal foundation of British rule in India.