In the year 1700, Murshid Quli Khan was appointed the Dewan on Bengal under the Mughal Empire. Since then he began to assume control of the region at a steady pace. Finally in 1717 CE, when he was given the title of Governor of Bengal he freed the region from the already disintegrating Mughal Empire and established his own rule in this region. He along with his successors came to be known as Nawabs and ushered in a period of peace and prosperity in the region.
Murshid Quli Khan, transferred large parts of jagir lands into khalisah lands and brought about new methods of revenue settlements. Another key change under his rule was the introduction of a new system called 'Revenue farming' . Murshid Quli Khan also granted agricultural loans to poor farmers to relieve their distress and enable them to pay revenue on a timely basis.
These reforms, though helped in the increase of resources within the government, they led to various other issues that set into motion the slow decline of this region.
All the Nawabs recognized the importance of trade for the people of their region and hence encouraged trading between all merchants - Indian as well as foreign. These Nawabs took utmost care to ensure smooth trade and commerce with the region by safeguarding the roads and rivers, keeping a check on private trade, maintaining strict control over foreign trading companies and preventing them from abusing their privileges.
The capital city of Bengal province - Murshidabad
In 1717 CE, the Mughal Emperor Farrukhsiyar had issued a farman, which confirmed the trading rights of the English East India Company in Bengal. The only condition was that the Company would pay the Mughal Emperor a sum of Rs. 3000 per annum in exchange for these privileges. This firman enabled the East India Company to carry on imports and exports in Bengal without paying any taxes and also gave them the right to issue 'Dataks' (passes) for the same.
The Nawabs of Bengal were upset as this firman and the privileges it conferred on the East India Company brought about a dent in the finances of Bengal. Hence the Nawabs began compelled the servants and officers of the English East India Company to obey the laws of the land and pay the same taxes and customs duties being paid by other merchants while carrying out their private trade.
Alivardi Khan was a strong leader as he did not allow the British and the French to fortify their factories in Cassim Bazar (Calcutta) and Chandernagore respectively. However, in many ways the Nawabs were also shortsighted as they failed to develop a strong army for their region. For example, the army of Murshid Quli Khan comprised on only 2000 cavalry and 4000 infantry.
The Nawabs, like many other regional kingdoms in India were also unaware of all that was happening in the rest of the world and therefore did not realize the true intentions of the English East India Company. Their naval superiority and military strength enabled the British to establish their foothold in India after the Battle of Plassey in 1757 CE.
The Battle of Plassey
The English East India Company officials refused time and again to pay the taxes and dues levied on private trade. Thus in 1756, matters became worse when the young and inexperienced Siraj-ud-Daulah became the Nawab after the death of Alivardi Khan.
Although Alivardi Khan had not given permissions to the French and English to fortify their factories, they defied his orders and began to construct fortifications illegally.
This did not bode well with Siraj-ud-Daulah and he ordered them to remove the fortifications immediately. The French adhered, however the British refused to obey these orders and as a result Siraj-ud-Daulah captured the British factories at Cassimbazar, near Calcutta. British reporters and historians termed this event as 'The Black Hole of Calcutta'. This is because it is believed that some British officers were held captive in a small room by the Nawab and many died of suffocation.
When news of Siraj-ud-Daulah's capture of Cassimbazar reached the British in Madras, they sent British troops under the leadership of Robert Clive to recapture Cassimbazar and Calcutta.
The British also decided to change the Nawab as they wanted someone who would grant favors and be a puppet in their hands. In the meanwhile, the British also hatched a conspiracy with some of the Nawab's closest aides - Mir Jafar and Rai Durlabh (generals), the super-rich banker Jagat Seth and Amichand.
On the 23rd of June, 1757, the British troops consisting of just 3000 met Siraj-ud-Daulah's force of 50,000 on the Battle field of Palashi. However, due to British conspiracy, the forces commanded by Mir Jafar and Rai Durlabh did not participate in the battle, leading to the defeat of Siraj-ud-Daulah. Mir Jafar was then installed as the new Nawab of Bengal.
Read on here to know some more interesting facts about this battle: The Battle of Plassey
Nawab Mir Qasim of Bengal
Mir Jafar was soon unable to fulfill the expectations of the British and his treasury was severely depleted by as a result of fulfilling their bribes. The British also began criticizing the Nawab for his incapability to fulfill their expectations and soon pressurized him to abdicate in favor of his son-in-law Mir Qasim.
Mir Qasim was a strong, able and efficient ruler, who wished to keep his region out of foreign control. But in order to do this, he realized the need to keep a firm control on all illegal British activities.
Thus in 1763, after loosing several battles with the British, Mir Qasim approached the Nawab of Awadh - Shuja-ud-Daulah and the Mughal Emperor Shah Alam II and successfully formed an alliance with them against the British. The three allies clashed with the company's army at Buxar on 22nd October 1764 and were thoroughly defeated. This was one of the most decisive battles of Indian history for it demonstrated the superiority of the English arms over the combined army of two of the major Indian powers!
In the aftermath of the Battle of Buxar, the English East India Company was able to successfully coerce the Nawab of Awadh Shujah-ud-Daulah and the Mughal Emperor Shah Alam II to sign a treaty in Allahabad in 1765. This treaty, known now as the Treaty of Allahabad, secured the following advantages for the British:
The Company obtained the Diwani (revenue) Rights of Bengal, Bihar and Orissa from Shah Alam II and in return he was promised a tribute of Rs. 26 Lakh annually. These rights enabled the Company to exploit the resources of the region.
The Company returned the territories of Awadh to the Nawab - Shujah-ud-Daulah, in exchange of a payment of Rs. 50 Lakhs. The Nawab was also forced to enter into a defensive alliance with the British.
The Company took away the districts of Kora and Allahabad from the Nawab of Awadh and handed them over to the Mughal Emperor Shah Alam II.
The Treaty of Allahabad, 1765
Signed between the East India Company, Shah Alam II and Shujah-ud-Daulah.
Mughal Emperor Shah Alam II, handing over a scroll containing the Diwani Rights of Bengal, Bihar and Orissa, to the British (EIC) as part of the Treaty of Allahabad, 1765.
The signing of the Treaty of Allahabad led to a drastic change in the administration of the province of Bengal. A new system of administration was proposed by Robert Clive - the Dual system of Governance.
Under this system, the British had all the powers to collect revenue and discharge civil justice. However, the responsibility to maintain law and order and deal with crimes was under the charge of the Nawab.
Thus the British safely held on to all their powers and privileges, without taking on any responsibilities. Whereas, the Nawab was burdened with all the responsibilities but no powers or means to execute them.
This system brought about a ruin for the people of Bengal province and was finally brought to an end by Warren Hastings in 1772 CE.