Q. The Treaty of Allahabad (1765) was signed by Robert Clive separately with two principal parties. What were the key terms of the treaties?
1.With the Mughal Emperor Shah Alam II: The Emperor granted the EIC the Diwani of Bengal, Bihar, and Odisha in exchange for an annual tribute and the districts of Kora and Allahabad.
2.With the Nawab of Awadh, Shuja-ud-Daulah: The Nawab was forced to cede half of his territory to the EIC and disband his army.
3.The EIC agreed to assume responsibility for both the Diwani (revenue collection) and the Nizamat (civil administration and police) functions in Bengal.
Which of the statements given above is/are correct?

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: A
Notes:

Explanation:

  • Statement 1 is correct. The Treaty with Shah Alam II formalized the grant of the Diwani rights to the EIC, giving them control over the vast revenues of Bengal, Bihar, and Odisha, marking the true legal beginning of the British political dominion.
  • Statement 2 is incorrect. The Nawab of Awadh (Shuja-ud-Daulah) was required to pay a war indemnity and cede Kora and Allahabad to the Emperor, but he was not forced to cede half of his territory or completely disband his army. Awadh was kept as a buffer state.
  • Statement 3 is incorrect. The Treaty only granted the EIC the Diwani (revenue). The Nizamat (police, justice, defense) was kept with the puppet Nawab, which led to the Dual System of Government.
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