What Were the Diwani Rights?

The Diwani Rights are a way to legally collect revenue. The British East India Company was allowed by the Diwani Rights to utilise Bengal’s substantial revenue resources. Moreover, the Company could employ the revenue for financing its trade and other expenses, as well as for enhancing its military power.In this blog, we will read more about these rights and learn everything about them.

Who gave the Diwani Rights to the British?

On the 16th of August 1765, the Treaty of Allahabad was signed between Robert Clive of the British East India Company and Mughal Emperor, Shah Alam II. This contract was signed after the Battle of Buxar on the 22nd of October 1764. I’tisam-ud-Din, a Bengali scribe and diplomat to the Mughal Empire, handwrote the Treaty.

In addition, the Treaty signified the British political and constitutional involvement in India. According to the terms of the Treaty, Shah Alam II gave the British East India Company these rights, thus allowing the British to collect taxes at the behest of the Emperor from the eastern provinces of Bihar, Orissa and Bengal. Furthermore, these rights allowed the Company to directly collect revenue from the residents of Bihar, Orissa and Bengal. In exchange for the Diwani Rights, the Company had to pay an annual sum of 26 lakh rupees while guaranteeing that Shah Alam II retained control over the districts of Allahabad and Kora. Thus, the sum had to support the maintenance of the Emperor’s court in Allahabad.

How did the Diwani Rights Benefit the Company?

These are the following ways these rights were beneficial to the East India Company:

• Revenue Collection: The primary benefit was the authority to collect taxes on behalf of the Mughal Emperor from the eastern provinces of Bihar, Orissa and Bengal. This gave the East India Company direct access to the immense substantial revenue resources of these regions.

• Financial Control: Moreover, with the Rights, the East India Company acquired financial authority over a very significant part of India. Thus, allowing the British to handle and administer resources further enhancing their economic influence in the region.

• Trade and Expenses: The revenue accumulated via the Diwani Rights could be used by the British East India Company to finance their trade activities and cover other expenses. This financial autonomy contributed to the Company’s economic growth.

• Military Strength: In addition to economic benefits, the revenue generated from the Diwani Rights could be utilised to strengthen the military power of the British East India Company. This was necessary for maintaining continuous control and stability in the regions under their power.

• Political Influence: Furthermore, controlling the financial affairs of Bihar, Orissa and Bengal gave the British East India Company significant political leverage. Thus, allowing them to exercise power in the local governance and additionally solidify their standing in the Indian political scenario.

Also Read: Essay on Colonialism: Samples for Students in English

10 Key Points on Diwani Rights (1765)

Are you looking for the Indian history diwani rights notes? Here we have provided some of the key points on Diwani Rights that you must know about:

1. Diwali rights referred to the authority to administer civil justice and to collect revenue in a region.
2. In 1765, the Treaty of Allahabad was signed. As per the treaty, the Mughal Emperor Shah Alam II granted these rights to the British East India Company. The rights of states like Bengal, Bihar, and Orissa were given to the East India Company.
3. This grant allowed the company to collect the revenues directly from the people. Thus, they were able to increase their financial and administrative control over these regions.
4. The transfer of these rights reduced the authority of the Mughal Empire. The British viewed the grant of these rights as a weakness and began to annexe more territories. 
5. Robert Clive, the Governor of Bengal was played an important role in securing these rights for the Company and even negotiated terms that were favourable to the British.
6. A dual system was established where the company has revenue rights. On the other hand, the Nawab retained the administrative and judicial powers.
7. The revenue from these regions increased the company’s finances, and allowed them to further expand and consolidate their power.
8. Financial power meant political influence. Thus, the company was able to interfere in regonal politics and assert their dominance.
9. The company began to influence local governance and the basics for colonisation.
10. The acquisition of Diwani rights is considered the beginning of formal colonial rule in India.

To learn more about Diwani rights, watch the video below:

Who was the Governor General of India in 1765?

In 1765, there was no position existing for a Governor General of India. The position of the Governor General of India was created in 1773. The position was created under the Regulating Act. During that era, Robert Clive was appointed as the Governor of Bengal. His role enabled him to expand the influence of the British East Indian Company in India.

Who is the 1st Governor of India?

The position of the Governor General of India was established by the Charter Act of 1833.  Before this, the title was  “Governor-General of Bengal.. The first Governor General was Warren Hastings (1773-1785). This rule is important to lay the foundation for colonial rule.  In 1833, the Charter Act redefined the position and made the Governor-General of Bengal the Governor-General of India,. The Governor General of India had authority over all the British colonies in India. Lord William Bentinck became the first person to hold this position.

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