The Treaty of Allahabad was signed on 16
August 1765,
between the Mughal
Emperor Shah Alam II, son of the late
Emperor Alamgir II, and Robert Clive, of the
East India Company, in the aftermath of
the Battle of Buxar of 22 October 1764.
The treaty was handwritten by I'tisam-ud-
Din, a Bengali Muslim scribe and diplomat
to the Mughal Empire.

The treaty marked
the political and
constitutional
involvement of the
British in India.

Based on the terms
of the agreement,
Alam granted theDiwani rights, or the
right to collect taxes
on behalf of the
Emperor from the
eastern province of
Bengal-Bihar-Orissa.
These rights
allowed the
company to collect
revenue directly
from the people of
Bengal, Bihar, and
Orissa. In return, the
Company paid an
annual tribute of
twenty-six lakhs of rupees (equal to
260,000 pounds
sterling) while
securing for Shah
Alam II the districts
of Kora and Allahabad. The tribute money
paid to the emperor was for the
maintenance of the Emperor's court in
Allahabad. The accord also dictated that
Shah Alam be restored to the province of
Varanasi as long as he continued to pay a
certain amount of revenue to the company.
Awadh was returned to Shuja-ud-Daula, but
Allahabad and Kora were taken from him.
The Nawab of Awadh Shuja ud Daulah also had to pay fifty lakhs of rupees as
war indemnity to the East India Company.
Moreover, the two signed an alliance by
which the company promised to support
the Nawab against outside attacks
provided he paid for services of the troops
sent to his aid. This alliance made the
Nawab dependent on the company. This
was a turning point in Indian history.