When Mir Jafar protested, the company deposed him and installed Mir Qasim in his place. When Mir Qasim complained, he in turn was defeated in a Battle fought at Buxar (1764); driven out of Bengal, and Mir Jafar was reinstalled. Mir Jafar was brought back as Nawab of Bengal.
Through the Nawab continued to be responsible for the administration of the province, the revenue from the land now went to the British. This was called the system of dual government. The Nawab had to pay Rs 500,000 every month but the Company wanted more money to finance its wars, and meet the demands of trade and its other expenses. It wanted more territories and more revenue. By the time Mir Jafar died in 1765 the mood of the company had changed. Having failed to work with puppet nawabs, Clive declared: “We must indeed become nawabs ourselves.”
Finally, in 1765 the Mughal emperor appointed the Company as the Diwan of the provinces of Bengal. The Diwan allowed the company to use the vast revenue resources of Bengal. This solved a major problem that the company had earlier faced. From the early eighteenth century its trade with India had expanded. But it had to buy most of the goods in India with gold and silver imported from Britain. This was because at this time Britain had no goods to sell in India. The outflow of gold from Britain slowed after the Battle of Plassey, and entirely stopped after the assumption of Diwan. Now revenues from India could finance Company expenses. These revenues could be used to purchase cotton and silk textiles in India, maintain Company fort and offices at Calcutta.
In which year was the Battle of Buxar fought ? | |||
Right Option : C | |||
View Explanation |
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