The East India Company as Diwan of Bengal in 1765

Introduction:
The appointment of the East India Company as the Diwan of Bengal in 1765 was a significant event in the history of the Mughal Empire and the British colonial rule in India. This decision was primarily influenced by the defeat of the native rulers in the Battle of Buxar, which ultimately led to the establishment of British control over Bengal.

The Battle of Buxar:
The Battle of Buxar, fought in 1764, was a major conflict between the East India Company and the combined forces of the Mughal Empire, Nawab of Bengal, and the Nawab of Awadh. The East India Company emerged victorious in this battle, which had far-reaching consequences for the Mughal Empire.

Defeat of Native Rulers:
The defeat of the native rulers in the Battle of Buxar weakened their position and authority in Bengal. The Mughal Empire, which was already facing internal conflicts and declining power, found itself unable to counter the growing influence of the East India Company. As a result, the Mughal Emperor Shah Alam II and his advisers saw the Company as a potential ally to maintain some semblance of control over Bengal.

Alliance with the East India Company:
Recognizing the military prowess and political influence of the East India Company, the Mughal Emperor Shah Alam II entered into a treaty known as the Treaty of Allahabad in 1765. According to this treaty, the Mughal Emperor granted the Diwani rights of Bengal, Bihar, and Orissa to the East India Company. This effectively made the Company responsible for collecting revenue and administering these regions.

The Effective Revenue System:
One of the key reasons behind the Mughal Empire's decision to appoint the East India Company as the Diwan of Bengal was the Company's reputation for introducing an efficient revenue system. The Mughal Empire was facing significant financial challenges and administrative inefficiencies, which led to a decline in revenue collection. The East India Company, on the other hand, had a well-established system for revenue collection and administration in its existing territories.

Conclusion:
In conclusion, the appointment of the East India Company as the Diwan of Bengal in 1765 was primarily a result of the defeat of the native rulers in the Battle of Buxar and the subsequent decline of the Mughal Empire. The Company's military victory, coupled with its reputation for effective revenue administration, made it an attractive choice for the Mughal Emperor Shah Alam II to maintain some control over Bengal. This decision marked a significant turning point in the history of British colonial rule in India, eventually leading to the establishment of British dominance over the subcontinent.