East India Company granted status of tax collector for Bengal, Bihar and Orissa

(122 words)

Historical Context Note

Despite his enemies in London, Robert Clive, now Baron of Plassey, was sent back to India in 1765 to subdue Mogul insurgency. By August 1765 he had coerced the Mogul emperor, Shah Alam II, into granting the Company the status of diwan, collector of imperial revenues in the provinces of Bengal, Bihar and Orissa. The agreement was made at a grand and ostentatious ceremony in Allahabad. In effect, the East India Company moved from colonial trader to colonial administrator without consulting the Company’s Directorate or the British government. East India Company stock in London soared in value on the unreal expectations of wealth to come as neither Directors not speculators realised the huge burden of military expenditure …

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Clark, Robert. "East India Company granted status of tax collector for Bengal, Bihar and Orissa". The Literary Encyclopedia. First published 01 February 2010
[http://www.litencyc.com/php/stopics.php?rec=true&UID=4187, accessed 13 October 2015.]