The Treaty of Allahabad, signed on August 16, 1765, was a significant agreement between the British East India Company and the Mughal Emperor Shah Alam II. The treaty marked a crucial turning point in the British Company’s control over India and had far-reaching consequences for the political landscape of the subcontinent.

By the mid-18th century, the British East India Company had established a strong presence in Bengal and other parts of eastern India. Through a series of battles and diplomatic maneuvers, they gained significant influence and control over trade, administration, and revenue collection in the region. The Battle of Buxar in 1764 further strengthened the Company’s position, as they defeated the combined forces of the Mughal Emperor, the Nawab of Bengal, and the Nawab of Awadh.

Terms of the Treaty:

• Diwani Rights: The most crucial provision of the Treaty of Allahabad was the grant of Diwani rights to the British East India Company. The Mughal Emperor Shah Alam II conferred the Diwani (the right to collect revenue) of Bengal, Bihar, and Orissa to the Company. This meant that the Company gained control over the financial and administrative affairs of these territories.
• Tribute to the Emperor: In exchange for the Diwani rights, the British Company agreed to pay an annual tribute of 26 lakh rupees to the Mughal Emperor. This tribute was a symbolic acknowledgment of the emperor’s authority, although, in reality, the Company exercised significant control over the territories.
• Jagirs and Land Grants: The Company also agreed to grant Shah Alam II the districts of Kora and Allahabad, along with an annual revenue of 26 lakh rupees. Additionally, the Emperor received the districts of Benaras, Ghazipur, and Chunar as personal jagirs (land grants).
• British Control: The treaty cemented British control over the territories of Bengal, Bihar, and Orissa. The Company’s administrators replaced the existing Mughal officials, and the revenue collection and administration of these territories came under the Company’s authority.

Implications and Significance: The Treaty of Allahabad had several important implications for the British East India Company and the Mughal Empire:

1. Expansion of British Power: The treaty significantly expanded the Company’s territorial control and enhanced its political influence. It marked a transition from being primarily a trading entity to becoming a major political and administrative power in India.
2. Weakening of the Mughal Empire: The treaty further weakened the authority of the Mughal Emperor. Shah Alam II had to rely on the British for financial support and military protection. It demonstrated the diminishing power and influence of the Mughal Empire in the face of British expansion.
3. Economic Exploitation: With the Diwani rights, the British Company gained control over the revenue collection and administration of Bengal, Bihar, and Orissa. This allowed them to exploit the economic resources of these territories for their benefit, leading to significant wealth accumulation.
4. British Influence: The treaty established a precedent for subsequent treaties and agreements between the British and various Indian rulers. It showcased the Company’s ability to negotiate advantageous terms and secure political dominance over Indian territories.
5. Political Repercussions: The Treaty of Allahabad contributed to the decline of the Mughal Empire and the rise of British dominance in India. It paved the way for further expansion and consolidation of British control, eventually leading to the establishment of the British Raj in India.

In conclusion, the Treaty of Allahabad was a pivotal agreement that granted the British East India Company Diwani rights over Bengal, Bihar, and Orissa. The treaty enhanced the Company’s control over these territories, weakened the Mughal Empire, and laid the foundation