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

Historical Context Note

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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 which the Company would now incur.

122 words

Citation: Clark, Robert. "East India Company granted status of tax collector for Bengal, Bihar and Orissa". The Literary Encyclopedia. First published 01 February 2010 [https://www.litencyc.com/php/stopics.php?rec=true&UID=4187, accessed 19 March 2024.]

4187 East India Company granted status of tax collector for Bengal, Bihar and Orissa 2 Historical context notes are intended to give basic and preliminary information on a topic. In some cases they will be expanded into longer entries as the Literary Encyclopedia evolves.

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