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Shah Alam II, ruled the Mughal Empire from 1759 to 1806. He was one of Aurangzeb’s successors. Shah Alam suffered the invasion of Ahmed-Shah-Abdali in 1761 and consequently granted the 'Diwani' of Bengal to the British East India Company, in 1765. The emperor also accepted the protection of the Company in 1803.


Shah Alam II

A Picture of Emperor Shah Alam II Holding Court

The East India Company became the Diwan of Bengal on 12th August 1765.

During the rule of the Mughal Empire, the Diwan served as the chief revenue officer of a province.

The papers appointing the Company as the Diwan of Bengal were handed over to Robert Clive.

  • With the appointment as the Diwan, the Company became the chief financial Administrator of Bengal.
  • The company could now administer the land and revenue resources of Bengal.
  • The revenue from Bengal could be utilized to meet the expanses of the Company.
  • The Company now had the liberty to trade in all the goods it wanted to.


    Apart from the above mentioned advantages the Company had to consider other administrative procedures as the Diwan of Bengal.


  • The company had to be cautious about any changes it wanted to bring about.
  • It had to build a good relationship with the people who ruled the region till then.
  • The company was faced with the daunting task of controlling people who had power locally.

    The East India Company had ambitious plans to establish itself further in India.


  • The company wanted to colonise the country side.
  • It wanted to organise revenue resources.
  • Its priority was to redefine the rights of people.
  • It was keen to produce the crops it wanted, in India.

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